50% tax relief – Seed Enterprise Investment Scheme (SEIS)

Many of you may be aware of the Enterprise Investment Scheme (EIS) and have benefited from using the scheme.

From 6^th April 2012 there is a new scheme to run alongside the EIS and Venture Capital Trust (VCT) schemes.

It is targeted at investments in smaller companies (for assets under £200,000, less than 25 employees), but the tax relief is 50% and there is no capital gains tax on the sale of your investment after the qualifying period (based on 3 years ownership).

There are various qualifying conditions to meet with regards to the company to be invested in and the investment limit is £100,000 per fiscal year.  The investor must also not obtain more than 30% of the share capital or votes.

If you are looking to invest in a small company, do not overlook this opportunity to make substantial tax savings.

The above is only a very brief outline of the scheme, but please contact us if you require any further information.