On 6 April 2012, the new legislation to incentivise investment in early stage companies announced in the Autumn budget will come into effect.
Family, friends or business angels will benefit from a tax-saving of 50% of amounts invested (up to a maximum of £100,000 in each tax year) regardless of their marginal rate of income tax. A subsequent disposal of a qualifying SEIS investment will be totally exempt from Capital Gains Tax. Investors will also benefit from an exemption from Capital Gains Tax within the tax year 2012-2013 where the proceeds of any capital disposal are re-invested in a qualifying SEIS company in the same year. Companies will be able to raise a maximum aggregate of £150,000 under SEIS and must have gross assets of less than £200,000 and fewer than 25 full-time employees at the time of the investment. The SEIS shares must be issued within 2 years of the incorporation of the Company and monies raised must be utilised within 3 years.
Please note that this information is provided for general knowledge only and therefore specific advice should be sought for individual cases.
For further information, please contact Paul Gilks at
