Seed Enterprise Investment Scheme
Invest in start ups, receive up to 50% income and 50% capital gains tax relief
Like the EIS, the Seed Enterprise Investment Scheme (SEIS) rewards investors with very significant savings when they invest in young and small companies that qualify for SEIS status.
The difference is SEIS-qualifying companies are even smaller and younger than EIS-qualifying companies, so even riskier. To compensate for the additional risk, the government offers even more generous tax savings:
- 50% income tax relief – get back half of what you invest
- Enjoy tax-free growth
- Halve capital gains liability from other investments
- Offset any losses against your income, so you save income tax
- Pass on your investment free of IHT
The SEIS was introduced in 2012. In its first three years, more than 4,600 individual companies raised £424.2 million in investment (up to 2014/15). Investors have made 71,130 subscriptions and claimed their 50% income tax relief.
Investing in SEIS is straightforward. Simply look at current SEIS offers, download the documents and application pack, complete and return it to Wealth Club with your cheque payable to the relevant provider. In some cases you can even apply online – usually the quickest way to make your SEIS investment. Before you invest you should also ensure you have read and understood the Risks and Commitments.
We will check and acknowledge your application and forward it to the relevant provider. Depending on the SEIS it can take several months to receive your share certificate from the provider. The SEIS3 form, to enable a tax rebate claim, should follow in due course from the product provider.