SEED ENTERPRISE INVESTMENT SCHEME (SEIS)
The Seed Enterprise Investment Scheme, like EIS, is one of the venture capital (VCT) schemes. Launched in 2012, SEIS offers an even bigger tax break than EIS. SEIS is designed for early-stage or start-up companies to help raise funds through investors. Shares in the company must have been issued on or after April 6th, 2012.
Individuals can invest up to £100,000 in a single tax year, spread out between qualifying companies and they must not hold more than a 30% stake in any of the companies they invest in.
Income Tax Relief
An investor in an SEIS eligible business can claim back up to 50% of the value of their investment in the form of income tax relief.
If the company fails, the investor may claim loss relief. The amount of loss relief you can claim is equivalent to the rate of income tax you pay.
Capital Gains Tax Relief
Investors get exemptions from Capital Gains Tax on earnings from shares. Profits realised within 3 years are also exempt from Capital Gains if reinvested in the SEIS.