A scheme introduced to encourage equity investment in start-up trading companies. From 6 April 2012, taxpayers can benefit from:
Income tax relief at the rate of 50% (up to an annual investment limit of £100,000).
Capital gains tax (www.practicallaw.com/A34601) (CGT) exemption.
CGT reinvestment relief on gains accruing in 2012-13.
Shares must be held for at least three years and various other conditions must be met.
A company's shares are eligible for the SEIS if:
It is an unquoted trading company with gross assets of no more than £200,000.
It meets various other conditions, which are set out in Practice note, Seed Enterprise Investment Scheme (SEIS) (www.practicallaw.com/1-518-9166).