The Seed Enterprise Investment Scheme (SEIS) was recently developed by the UK government to act as an incentive for investors to invest in very small businesses, new businesses. SEIS is similar in many ways to the EIS discussed in the previous chapter, but it consists of some key difference as well.
Individuals who make SEIS qualifying investments can receive income tax relief equal to 50% of investment contributions up to £100,000 (meaning that they will receive tax reliefs of up to £50,000). These investors can apply the relief against their tax payable for the year in which the investment was made, the previous year, or they can split the relief between the two years. Investments must be made for new shares that are issued between 6 April 2012 and 5 April 2017.
Conditions and Eligibility
Who is a qualifying investor?
SEIS relies on the concept of ‘New qualifying trades’, which include the following features:
The timeframe for which these conditions must be satisfied varies on an individual basis.