Seed Enterprise Investment Scheme Support

The Seed Enterprise Investment Scheme, or SEIS, is a scheme introduced by the UK government to encourage investors to provide financial support to startups through tax breaks. Small companies can apply for SEIS assurance in order to start raising funds; there are rules that they must follow so that investors can claim and keep SEIS tax reliefs. For help navigating SEIS, it is best to use an accountant such as Sleek.

The Seed Enterprise Investment Scheme allows investors to claim relief on up to £100,000 invested into startups; startups can register for SEIS assurance to encourage these investments until £150,000 has been made through the scheme. There are various rules both parties have to follow; for streamlined use of the scheme it is best for organisations to work with an accountancy service such as Sleek.

A company looking to secure SEIS investment must have less than 25 employees, under £200,000 in gross assets and be younger than two years. To be eligible for SEIS, an company cannot be a partnership. Accountants such as Sleek can advise companies looking to gain SEIS assurance and help them to navigate the process.

There are a number of tax reliefs that investors can gain through the SEIS. These are: individual Income Tax relief of 50% of the amount invested, loss relief if the company fails and exemption from Capital Gains on earnings from shares. Profits realised within three years will also be exempt from Capital Gains.

You usually pay no capital gains on SEIS so long as you have claimed income tax relief on them; there are two main capital gains reliefs- the reinvestment relief and the disposal relief. To properly navigate SEIS investment, it is best to speak to a financial advisor.