The SEIS allows investors to claim reinvestment relief of 50pc when investing the proceeds of a capital gains-liable disposal, in effect cutting the tax bill in half. Gains from the scheme are also exempt from capital gains taxes.
The SEIS was established in 2012 to help stimulate Britain’s start-up economy. Companies that are less than three years old and have fewer than 25 employees can raise up to £250,000 from the SEIS.
Ed Prior, head of investor services at SFC Capital, which runs the UK’s biggest SEIS fund, said investments since the start of July were up 90pc,
And thus the story of vast numbers dodging future CGT rises etc.
at £3.1m compared to £1.6m in the same period a year ago.
Ah.
SFC accounts for around 10pc of all SEIS investments. In total, the scheme invested £157m in 1,815 companies in the 2022-23 tax year.
Fairly trivial in the scheme of things then…but got an article about in the Tele so well done there….
They’ve missed out the most immediately valuable part of the relief – the 50% income tax relief.
The CGT reinvestment relief saves you at most 14% of the amount you invest – which is nice, but isn’t 50%.