21 May 2024
The SEIS provides for extensive Income Tax and Capital Gains Tax (CGT) breaks for investors who invest in new businesses and offers taxpayers significant tax benefits.
For investors, the main benefits of the scheme are as follows:
The availability of both Income Tax and CGT relief has made the SEIS a popular scheme. The reliefs are only available where there is sufficient liability to set against. Under certain circumstances, small business owners can also use the scheme to invest in their own businesses.
Investors must be careful to conduct proper due diligence on any investments made as the generous tax rewards of the scheme do not always offset the risks. Investors must be aware that they can lose more than they invested, including the tax relief. There are also a number of conditions which must be met in order to invest in the scheme.