Q: I’m interested in investing in a startup and I’ve heard about the Seed Enterprise Investment Scheme. I’m considering investing £30,000 in a company that qualifies this tax year. What tax relief can I expect?
A: You’re right in identifying that The Seed Enterprise Investment Scheme (SEIS) may be helpful in what you’re looking to do, offering as it does, some tax relief. For the 2024/25 tax year, you can claim income tax relief of 50% on eligible investments up to £200,000. That means, for your £30,000 investment, you could receive £15,000 in income tax relief. Additionally, there are two reliefs related to Capital Gains Tax that may apply. Firstly, disposal relief. If this is due, and your SEIS shares are held for at least three years and the company qualifies, any capital gains from their will be exempt from CGT. Secondly, there’s reinvestment relief, where a gain coming from the 2023/24 tax year on disposing an asset is reinvested in shares in a company on which you get SEIS Income Tax Relief.
