Seed Enterprise Investment Scheme (SEIS)
The SEIS was initially introduced for a limited five year period from 1 April 2012, but has since been extended indefinitely, with the income tax and capital gains tax reliefs applying as shown below for all future years.
|Rate of income tax relief||50%|
|Maximum investment qualifying for income tax relief||£100,000|
|Gains exempt from CGT relief on investment in SEIS shares:||50%|
Venture Capital Trusts (VCTs)
Investing in VCT shares gives the taxpayer 30% income tax relief on up to £200,000 invested per tax year, and the shares are generally exempt from capital gains tax when sold. However, to counter perceived abuse of the scheme, following changes were made from 6 April 2014:
- tax relief is withdrawn if the shares are disposed of within five years;
- the VCT will not be permitted to return capital to its members within three years of the shares being subscribed for; and
- VCT investments that are linked to share buy-backs will be denied tax relief.