WHAT IS SEIS?
If you’re an investor or an entrepreneur seeking funding, understanding these schemes can be a game-changer. Let’s walk through the basics of SEIS and EIS, how they work, their benefits, and how they can fuel growth for startups.
The Seed Enterprise Investment Scheme (SEIS) is a UK government program designed to promote investment in small and early-stage companies. It offers attractive tax incentives to individual investors who support these startups. SEIS encourages investors to take calculated risks by providing them with substantial tax reliefs.
KEY FEATURES OF SEIS
SEIS offers the following benefits to investors:
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Income Tax Relief: Investors can claim up to 50% of their investment amount as income tax relief, helping reduce the overall tax liability.
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Capital Gains Tax Exemption: Any gains made from the sale of SEIS shares are exempt from Capital Gains Tax (CGT) if certain conditions are met.
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Loss Relief: In case of business failure, investors can offset their losses against other taxable income, further reducing the risk.
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Carry-Back: Investors can carry back the SEIS investment to the previous tax year, maximizing the tax relief.
qualifying for SEIS
For a startup to qualify for SEIS, it must meet specific criteria, including:
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Operating less than three years
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Having fewer than 25 employees
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Holding gross assets of under £350,000
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Not raising more than £250,000 through SEIS funding round
SEIS TAX CALCULATOR
Your Details
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Estimated Performance: SEIS V STANDARD INVESTMENT
| Data | SEIS | Standard |
|---|---|---|
| Total Investment | £0.00 | £0.00 |
| Proposed return percentage | 0% | 0% |
| Tax rate | 0% | 0% |
| Income tax OFFSET | £0.00 | £0.00 |
| Loss relief insurance | £0.00 | £0.00 |
| Total level of risk | £0.00 | £0.00 |
| Percentage of risk against investment | 0% | 0% |
| Proposed return | £0.00 | £0.00 |
| Gain achieved | £0.00 | £0.00 |
| Capital gain bill | £0.00 | £0.00 |
| Total ROI after tax | £0.00 | £0.00 |
PLEASE NOTE: This calculator provides a rough guide and makes some asumptions, it does not replace professional advice. Taxation offsets can change throughout the lifetime of an investment. Investors are encouraged to seek advice from a qualified professional before making any investment. To understand more about these types of investments and how they can benefit you please contact your accountant or click here to learn more.