Seed Enterprise Investment Scheme (SEIS) Tax Relief
Monday 19th December, 2011 at 12:03
From 01 April 2012 the rate of Income Tax relief given to investors in SEIS companies is 50% for both the 40% and 50% UK tax payer.
A seed company qualifying for EIS must be a new company, must be unquoted, have 25 of fewer employees and assets of up to a maximum of £200,000 at the point of investment.
The maximum intitial investment is £100,000 and the maximum cumulative investment in one firm is £150,000.
Where a capital gain is realised and re-invested under this scheme is the same tax year, the gain will be exempt from tax.
Teh combined effect of the Capital Gains Tax holiday and the income tax break offers relief of up to 78% in the first year.
The list of qualifying trades can be found at:
