SEED enterprise investment scheme
The SEED enterprise investment scheme (SEIS) allows investors to invest up to £150,000 per annum into qualifying companies and providing the conditions are met they can receive income tax relief of 50% of the amount invested, and if the investor has a capital gains liability in the current year a 50% capital gains tax relief will apply to the reinvested amount.
The basic rules to qualify for the relief are that the investor or their associates must not own more than 30% of the shares, the trade must be a new trade and the company must not have had a previous trade, the value of investment must not exceed £150,000 and the gross assets of the company must not have exceeded £200,000 prior to the investment. Shares are to be held for a minimum of three years before they are disposed of.
In the 2014 Budget it was announced that the SEIS relief would be a permanent fixture.
Further information is available through using the following link H M Revenue and Customs SEIS this should be read in full before further action is taken.
Should you require any further information on the scheme please do not hesitate to contact Aston Hughes & Co.