skip to navigationskip to main content

Phone: 02920 777 756 

Email:

Tax Helpsheets

Back to Helpsheets

Seed Enterprise Investment Scheme (SEIS)

This is a similar scheme as EIS, but is aimed at smaller companies. The scheme is available from 6 April 2012.

Tax Reliefs

Income tax relief at a rate of 50% of the amount invested. This is subject to a maximum investment of £100,000 per year (in all SEIS companies).

The shares are subject to a Capital Gains Tax exemption where the SEIS shares are sold after 3 years or more of ownership (as for EIS).

A further Capital Gains Tax exemption is available where you re-invest any gain made from the sale of an asset into SEIS shares. For 2012/13 100% of the amount re-invested is exempt from CGT and for 2013/14 it is 50% of the amount re-invested.

Individuals Who Qualify For Tax Relief

Directors can qualify, but current employees cannot. Previous employees do qualify.

The individual cannot be connected to the company, in broad terms this means owning less than 30% of the company.

The SEIS Company

The maximum that can be raised through SEIS is £150,000 in total (not an annual limit).

The assets of the company must not exceed £200,000 before the issue of the SEIS shares.

The company must have fewer than 25 full time employees (or equivalent part-timers) immediately before the shares are issued.

The company must be carrying out a qualifying trade. The trade must have been carried out for less than 2 years, whether that was through the company or as an individual.

Companies with subsidiaries can qualify.

There are a number of anti-avoidance rules in place, which are largely derived from the EIS rules.

How We Can Help You

We can advise you on all aspects of qualification for both income tax and capital gains tax reliefs for SEIS investments.

Choosing a Service

Choosing an accountant that matches your needs

Useful Resources

Resources that needs for business development

icon-free-consultation

Free Initial Consultation

Understanding your accountancy requirements

Request a Callback

Lets talk at a more convenient time for you

An updated tax news with useful articles that can help you in reducing taxes legally, helping your business growth.

Tax Tips & News

We’re a dedicated team which strives to provide success to our clients in regards to all their accountancy needs.

Meet our team

Commercial Property

As a property owner you already know that Capital Allowances provide significant opportunities for you or your business to take advantage of tax savings.

Read more...

Reduce your SRA audit outlay

We appreciate the many challenges you face especially when combining the requirements of the Law Society's accounting regulations together with your hectic...

Read more...

How to Choose an accountant

Choosing an accountant is an important decision and you need to find one that matches your needs, you feel comfortable with, can trust and whose fee levels...

Read more...