Grow your own tax relief with HMRC

Bevan & Buckland AccountantsFrom 6 April 2012, a new Scheme was introduced by H M Revenue and Customs called the Seed Enterprise Investment Scheme (SEIS).  Individuals subscribing for shares in a new start-up company which meet the qualifying conditions will attract the following tax relief:

  1. Relief against income tax of 50% for investments of up to £100,000 per annum irrespective of the investor’s marginal tax rate.
  2. Capital Gains Tax Free Disposals; and 
  3. For investments made in the 2012/13 tax year only, an exemption from capital gains tax on gains arising on the disposal of an asset in the same tax year where the proceeds are reinvested under the SEIS. 

In certain circumstances, there is potential for a 50% taxpayer to receive £103 back from HMRC for every £100 they invest.  Even for a 40% tax payer it could potentially be £98 per £100. 

In order for a company to qualify it must have total assets of no more than £200,000 and fewer than 25 employees immediately before the investment. It must also satisfy a number of conditions which are aimed at ensuring it is a genuine start up.

If you would like to know how your company could attract investment in this way or if you are interesting in making investments, please contact Jeannette McLellan or Lee Bradley.Jeannette McLellan Tax Partner at Bevan and Buckland

Jeannette McLellan – Tax Partner
Direct Line – 01792 410101
E-mail –

Lee Bradley – Tax Manager
Direct Line – 01792 410119
E-mail –

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