Going to Seed

I assume you’ve heard of the Enterprise Investment Scheme (EIS). By coincidence, it had a mention in our Issue 35. Enter in 2012/13 the new SEIS will offer income tax relief at up to 50% of the sum invested instead of the 30% ordinary EIS relief. It will also offer capital gains tax exemption on gains made in 2012/13 where the gains are re-invested in SEIS companies. In theory, this could represent up to 78% tax relief. Not bad.

Whenever we’ve mentioned EIS we’ve also said that there are various conditions to be met by the individual investor and the company in which the investment is made. The same is true of SEIS. We won’t weary you with the details just yet; there may, anyway, be changes before it all actually happens. Essentially, the SEIS is like a baby EIS. Smaller figures all round. The capital gains tax deferral for EIS investors often attracts interest and the proposed exemption for SEIS investors is also likely to do so. If you’re trying to raise capital from private investors or you’re an investor seeking to shelter a capital gain please feel free to contact us for more details.