Seed investment

A new generous tax relief called Seed Enterprise Investment Scheme (SEIS) is being introduced and will apply to investments made on or after 6 April 2012. The main elements of SEIS are:

  • 50% income tax relief is given on qualifying investments
  • a maximum annual amount of investment of £100,000 per investor
  • the maximum SEIS investment is £150,000 per company
  • Capital Gains Tax is not charged for certain disposals
  • the investor must not own more than 30% of the company or be an employee
  • there must be no pre-arranged exit.

As with other forms of tax-advantaged investments, SEIS is hedged with conditions about qualifying trades and disqualifying events. However, this is a generous new tax relief, but where advice is required to ensure strict compliance.

As a separate development there are changes to the existing enterprise investment scheme (particularly in relation to who is a ‘connected person’), to the types of share that may be used, and to the maximum amount the company may raise. The maximum investment per individual doubles from £500,000 to £1 million.


Geoff Rhodes
Managing Director

For more information contact Geoff Rhodes, Managing Director, on 023 8046 1200.

HWB is a trading name of Hopper Williams and Bell Limited.

Registered in England and Wales No:4770023