This new tax advantaged form of venture capital scheme was announced at the Autumn Statement 2011; it will be focused on smaller, start up companies and will provide a form of relief similar to the EIS Scheme. This scheme will make tax relief available to investors who subscribe for shares and have less than a 30% stake in the company.
The main points to note are as follows:
The main points to note are as follows:
- The type of company this applies to is one that has less than 25 employees with assets of up to £200,000 who are preparing to carry on new business
- This will apply to the subscription of shares, using the same definition of EIS Shares
- The annual amount allowed for relief each year for an individual investor is £100,000
- There will be an exemption from CGT for capital gains made on shares within the scope of the SEIS regime
- There will be an exemption for gains realised on disposals of assets in 2012/2013 where the gains are reinvested through the new SEIS in the same year
- The individual investor will be given 50% income tax relief for the investment made and this will also be available for directors who invest in their company, provided they hold less than 30% of the shares
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