The aim of the Seed Enterprise Investment Scheme (SEIS) is to encourage investment in start-up companies by offering a range of tax reliefs to investors purchasing new shares in those companies. It is available for shares issued on or after 6 April 2012.
The scheme allows investors in qualifying companies to claim income tax and capital gains tax relief if the investment is approved under the SEIS rules by HM Revenue & Customs (HMRC).
Income tax relief (of 50% on investments of up to £100,000 per individual per tax year) and capital gains re-investment relief is available on investment. Exemption from capital gains tax and loss relief is available on a disposal of SEIS shares.
Read our SEIS Investment Guide
However, there are a number of conditions that must be satisfied in order for the investor to qualify for tax relief under the SEIS, both on the part of the investor himself and the company in which he is investing. Please read our SEIS Investment Guide for details.