Each individual will have
different circumstances, and there are very strict rules as to how much you may
be eligible for.
You can claim for up to 50% (SEIS)
and 30%(EIS) of your initial investment as Income Tax relief, providing you have
paid the equivalent or more tax in the previous tax year. There is also the
ability to go back one previous year to apply for relief.
This means an investment of
£10,000 into a qualifying SEIS would result in you receiving from HMRC £5,000
by way of Income Tax relief (assuming of course you had paid or where about to
pay at least £5,000 Income Tax in the tax year).
Providing you hold onto the
shares for at least three years they do not attract Capital Gains Tax (CGT)
In general both SEIS and EIS
shares become free from Inheritance Tax after being held for two years.
Should the shares be sold at a
loss (including zero value) this can be offset against either Income or Capital
We cannot stress enough that
investing in an early stage small company caries a high degree of risk and
should only be considered after you have researched the schemes yourself,
spoken with a tax adviser or sought the advice of a regulated UK financial
We're here to help. Get in touch and we’ll get back to you as soon as we can.
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