How to claim SEIS tax relief
When you invest in SEIS, you can receive up to 50% income tax and capital gains tax relief.
But how do you go about claiming the tax relief in practice?
Below we give a simple step-by-step guide, which you can use as a starting point, although it is not tax advice nor a personal recommendation. Tax rules change and benefits depend on circumstances. If you’re in doubt, you may want to seek advice from an accountant.
What you need to have on hand to claim SEIS tax relief
You will normally claim SEIS tax relief when you complete your tax return. You will be asked some information which is included in your SEIS3 certificates.
These are certificates you receive from each of the companies you invested in, typically a few months after the investment. If you invested in an SEIS fund, you will typically receive one SEIS3 form for each of the underlying companies.
The SEIS3 certificates contain the information you will need:
- The name of the company in which you have invested
- The amount you have subscribed and on which you can claim tax relief
- The date the shares were issued (this is usually different from the date you invested)
- The name of the relevant HMRC office and its reference
What you do next will depend on how you submit your tax return (by post or online). There is also an alternative method to be used in certain circumstances – for instance, if you do not wish to claim tax relief for the same tax year for which you’re submitting the return, or if you don't habitually file a tax return. The information below is current as per the 2022/23 tax year.
How to claim SEIS tax relief on your paper tax return
- You will need to complete the “Additional information” sheet (form SA101) and enclose it with your return.
- In the "Other tax reliefs" section on page Ai 2, in box 10 (“Subscriptions for shares under the Seed Enterprise Investment Scheme”) please write the total amount of all your SEIS subscriptions on which you wish to claim tax relief.
Tax relief claimed via your tax return will reduce the amount of tax you will have to pay. If you have already paid too much income tax, the excess can either be repaid by cheque or directly into your bank account.
How to claim SEIS tax relief in your online self-assessment form
- In section 3, “Tailor your return”, you will need to answer “Yes” to the question on other tax reliefs
- In section 4, "Fill in your return", under "Other tax relief and deductions" you will have to type the total amount of all your SEIS subscriptions on which you wish to claim tax relief and can provide details of each of your SEIS investments.
Please note, HMRC doesn’t require you to send the SEIS3 certificates for the investments on which you are claiming tax relief. It might, however, ask you to produce them, so please ensure you keep them safe.
Tax relief claimed via your tax return will reduce the amount of tax you will have to pay. If you have already paid too much income tax, the excess can either be repaid by cheque or directly into your bank account.
Alternative way to claim SEIS tax relief
There is also an alternative way to claiming SEIS tax relief. You could complete the claim form you receive – it’s on pages 3 and 4 of the SEIS3 – and send it to your HMRC tax office.
There are some circumstances when you should use this method. These include:
If you want to claim the tax relief against a previous year. This could be the case if you wish to use “carry back” or if you didn’t receive your SEIS3 certificate in time for the tax return deadline.
If you pay tax via PAYE and want to receive the tax relief through an adjustment of your tax code – this might be an option if you have invested in SEIS and received your SEIS3 certificate early in the tax year. You will also have to enter details of the claim when you file your tax return.
If you want to claim capital gains reinvestment relief as well as income tax relief.
In addition, you could use this method if you don’t habitually file a tax return – for instance, if all of your tax is paid at source through PAYE.
As mentioned above, this is not tax advice. If in doubt, please consult HMRC's full guidance on the subject, or speak to your accountant.