ARTICLE · 25 JULY 2014

Seed Enterprise Investment Scheme - 2014

Smith & Williamson

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The Government introduced the new Seed Enterprise Investment Scheme for shares issued after 5 April 2012, to encourage investment in small start-up companies.

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The Government introduced the new Seed Enterprise Investment Scheme (SEIS) for shares issued after 5 April 2012, to encourage investment in small start-up companies. This scheme can be attractive to investors by offering generous tax reliefs for qualifying investments.

Tax breaks available under the scheme

Up-front income tax relief of 50% for subscriptions of shares by investors (with carry back facility to the previous tax year).
No capital gains tax on the disposal of scheme shares which are held for more than three years.
An exemption from CGT is available for disposals of assets made in 2012/13 (100% of the gain) and 2013/14 onwards (50% of the gain), where the gain is reinvested in SEIS qualifying shares in the same tax year (or treated as so invested using the carry back facility).

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