Seed investment scheme begins to take root — SEIS extended
The Budget 2013 contained a number of measures to extend the capital gains tax relief for re-investing gains in Seed Enterprise Investment Scheme (SEIS) shares.
Amid the inevitable analysis of the winners and losers in the wake of George Osborne’s fourth budget, one group to emerge with an undoubted victory are business angels and the start-up companies in which they invest. SEIS was introduced in 2012 as the junior companion to the Enterprise Investment Scheme, which offers tax reliefs to those investing in small companies in the light of the risks associated with doing so. SEIS provides even more attractive reliefs in respect of investments in even more early-stage companies, which often struggle to attract investment because of the heightened risks attached.
The original scheme allows investors subscribing for new ordinary shares in qualifying companies, broadly unquoted companies with gross assets of £200,000 or less and fewer than 25 full-time employees which carry out a qualifying trade, to claim both income tax and capital gains tax relief. The income tax relief is against 50% of the sum invested in the start-up company up to an annual investment limit of £100,000, provided the shares are held for three years. An SEIS investor qualifying for such relief can also claim an exemption from capital gains tax on any gain arising on the disposal of the shares…
If you are registered and logged in to the site, click on the link below to read the rest of the Shoosmiths briefing. If not, please register or sign in with your details below.
Sign in or Register to continue reading this article
It's quick, easy and free!
It takes just 5 minutes to register. Answer a few simple questions and once completed you’ll have instant access.Register now
Why register to The Lawyer
In-depth, expert analysis into the stories behind the headlines from our leading team of journalists.
Identify the major players and business opportunities within a particular region through our series of free, special reports.
Receive your pick of The Lawyer's daily and weekly email newsletters, tailored by practice area, region and job function.
More relevant to you
To continue providing the best analysis, insight and news across the legal market we are collecting some information about who you are, what you do and where you work to improve The Lawyer and make it more relevant to you.
News from Shoosmiths
News from The Lawyer
Briefings from Shoosmiths
Case law confirms that HR is essential to supporting management when dealing with employee relations issues; however there is a clear difference between supporting a process and influencing a decision.
As it becomes increasingly common for contractual documentation to be concluded electronically, we examine the pros and cons of e-signatures against traditional wet ink signatures.
Analysis from The Lawyer
Compliance and corporate governance codes for large financial institutions will undoubtedly include provisions to regulate high pay in the future
There’s more to the ABS model than attracting the man in the street and procuring external investment. Partners at the big corporate firms, take note…