Entrepreneurs Week booklet digital - Catalog - Page 40
Spotlight on tax
Structuring
for success
4.
If you have the appetite for
higher-risk start-ups
Seed Enterprise Investment Scheme (SEIS)
What does it do?
SEIS is a form of EIS which is targeted
at even smaller (and riskier) start-up
businesses, but which offers enhanced
tax incentives.
Tax incentives
• They may deduct an amount equal to
50% of the sum invested from their total
UK income tax liability (up to an annual
investment limit of £100,000)
• Any unused annual investment limit may
be carried back and used in the previous
tax year
• If income tax relief is secured, any
subsequent capital gain on sale is exempt
from capital gains tax
• If the business is sold at a loss, relief
is given against either income or
chargeable gains tax
• Capital gains tax otherwise due on the
disposal of any asset may be exempt
from tax if the gains are reinvested in
SEIS shares.
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