Seed Enterprise Investment Scheme

Seed Enterprise Investment Scheme (SEIS) is focused on smaller, early stage companies carrying on, or preparing to carry on, a new business in a qualifying trade. The scheme will make available tax relief to investors who subscribe for shares and have a stake of less than 30 per cent in the company.

The SEIS:

applies to smaller companies, those with 25 or fewer employees and assets of up to £200,000, which are carrying on or preparing to carry on a new business;

gives income tax relief worth 50 per cent of the amount invested to individual investors with a stake of less than 30 per cent in such companies, including directors who invest in their companies;

applies to subscriptions for shares, using the same definition of eligible shares as EIS;

applies to an annual amount of investment of £100,000 per investor, with unused annual amounts able to be carried back to the previous year, as under EIS;

provides for relief within an overall tax favoured investment limit of £150,000 for the company. To give the greatest degree of flexibility, this will be a cumulative limit, not an annual limit;

provides for an exemption from CGT on gains on shares within the scope of the SEIS;

is exempt from CGT a gain to the extent of 50% of the investment in the SEIS