SEIS Tax Relief

You can claim back up to 50% of the value of your investment in the form of income tax relief. For example, if you make an investment of £10,000 you can save £5,000 in income tax.

If you hold your shares for at least 3 years, any gains are exempt from Capital Gains Tax.

You can carry back and treat your investment as if it were made in the previous tax year, in whole or in part, given that you have not reached your yearly SEIS shares allowance. This gives you the option to offset tax against the previous year’s tax bill. You must hold the shares for a minimum of 3 years to retain the tax relief.

You can benefit from 100% relief from inheritance tax after 2 years of holding SEIS shares. This means that any liability for inheritance tax is reduced or eliminated in respect of SEIS shares.

If you lose money on your investment, you may claim loss relief. The combination of income tax relief and loss relief provides a total tax relief of up to 72.5%. A loss can be offset by individual income, in the tax year of the loss or the previous tax year. Losses can also be offset against capital gains, including those that arise on the revival of any deferred gain.

Please note that tax relief is dependent upon an individual’s personal tax circumstances, so please be sure to get independent tax advice. If the companies lose their SEIS status or become non-compliant then tax reliefs may be withdrawn and will have to be repaid.