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Seed Enterprise Investment Scheme (SEIS)
Practical Law UK Glossary 3-519-0951 (Approx. 3 pages)
Glossary
Seed Enterprise Investment Scheme (SEIS)
A scheme introduced to encourage equity investment in start-up trading companies. From 6 April 2012, taxpayers can benefit from:
- Income tax relief at the rate of 50% (up to an annual investment limit of £200,000 (previously £100,000)).
- Capital gains tax (CGT) exemption.
- CGT reinvestment relief on accrued gains (the full amount of SEIS qualifying investment for tax year 2012-13, and half the amount of the SEIS qualifying investment for subsequent years, is matched with the gain).
Shares must be held for at least three years and various other conditions must be met.
A company's shares are eligible for the SEIS if:
- It is an unquoted trading company with gross assets of no more than £350,000 (previously £200,000).
- It meets various other conditions, which are set out in Practice note, Seed Enterprise Investment Scheme (SEIS).