About SEIS
What is the Seed Enterprise Investment Scheme (SEIS)?
The Seed Enterprise Investment Scheme (SEIS) was introduced in April 2012 by HMRC to help small, early-stage companies raise funds through individual investors by providing a series of tax reliefs on investments made into qualifying companies. It is structured to provide eligible investors who are tax resident in the UK, with the opportunity to obtain tax advantages available under the SEIS legislation.
SEIS Tax Reliefs Available
Investors can, depending on their individual circumstances, enjoy some or all of the tax benefits available under the Seed Enterprise Investment Scheme.
The following is a general summary of the main current tax advantages that may be available to an Investor under the Seed Enterprise Investment Scheme in respect of an investment made in an Investee Company during the tax year.
Tax advantages can only be claimed when the investor's funds have been deployed into a company, rather than when an investor makes an initial subscription.
The above does not constitute tax advice to any person: it is recommended that investors take independent, tax, legal and financial advice from a qualified professional adviser before considering an investment
50% Income Tax Relief
50% income tax relief up to a maximum investment in SEIS of £200,000 per tax year per individual.
50% Exemption from Capital Gains Tax
Capital gains made that are reinvested in SEIS shares qualify for a 50% exemption from CGT.
Tax Free Gains
There is no capital gains tax liability on gains on the disposal of shares which have been held for 3 years in SEIS qualifying companies, on which SEIS income tax relief has been obtained.
100% Inheritance tax Exemption
100% Inheritance Tax exemption through the availability of Business Relief may be available after each individual investment has been held for at least 2 years.
Income Carry-Back Relief
Investors can claim income tax relief for the tax year in which they invest in the underlying companies, or the tax year immediately preceding the investment. This enables the investor to claim tax relief in the period(s) most advantageous to him/her.
Loss Relief
A loss on any qualifying investment in the portfolio, irrespective of the overall performance of the portfolio, can be offset by individuals against income of the tax year of loss, or the previous year, or against capital gains of the tax year of the loss and future years.
SEIS Tax Reliefs Example
Investee Company x2 in value
Sum invested £50,000
Income Tax Relief £15,000
After holding shares for 5-7 years, you sell them for £100,000, owing nothing in capital gains tax.
Total gain to investor: £65,000 (£50,000 from the sales of shares, plus £15,000 from Income Tax Relief)
Total loss/gain
+£75,000
Investee Company Same Value
Sum invested £50,000
Income Tax Relief £25,000
After holding shares for 5-7 years, you sell them for £50,000, the price you paid.
Total gain to investor: £25,000 (£50,000 from the initial investment is returned, plus £25,000 from the Income Tax Relief)
Total loss/gain
+£25,000
Investee Company Goes out of business
Sum invested £50,000
Income Tax Relief £25,000
After the company goes out of business your shares are worth £0.
The investor receives loss relief from the government, equal to your capital at risk. In this example the £50,000 invested - £25,000 in Income Tax Relief, multiplied by the percentage bracket you belong to (£50,000 - £25,000). At a 45% tax bracket, the loss relief will be £11,250 (45% of £25,000). So for £50,000 invested, your real loss is £25,000 - £11,250 = £13,750
Total loss/gain
-£13,250
Our Products
An opportunity to participate in a range of diverse portfolios, proactively managed by our sector experienced team. Tax advantages are potentially available via the Enterprise Investment Scheme and Seed Enterprise Investment Scheme. Please view our specific product pages for more information. Financial Advice is recommended.
An opportunity for investors to participate in a portfolio of seed-stage technology innovation companies, whilst taking advantage of the potential tax benefits available under the Seed Enterprise Investment Scheme.
An opportunity for investors participate in a portfolio of growth-focused technology companies, whilst taking advantage of the potential tax benefits available under the Enterprise Investment Scheme.
An opportunity for investors to participate in a portfolio of growth-focused healthcare innovation companies, whilst taking advantage of the potential tax benefits available under the Enterprise Investment Scheme.
An asset-backed opportunity for investors to target long-term capital growth by investing in renewable energy generating trading assets.
The Private Investor Network of Deepbridge Capital, enabling experienced investors to define their own portfolio of innovative Life Sciences and Technology companies.
Deepbridge Protect is an IHT mitigation service that seeks to help businesses obtain full IHT relief, through their membership of a trading Partnership participating in a qualifying trade, so as to qualify for Business Relief.
