The Seed Enterprise Investment Scheme (SEIS) targets younger, smaller companies to encourage seed investment.
Investors, including directors, can receive initial tax relief of 50% on investments up to £100,000 and Capital Gains Tax (CGT) exemption for half of any gain on the SEIS shares if they are reinvested into another SEIS-eligible company.
Seed investing is always riskier, so the loss relief benefit of the scheme is incredibly attractive. Like EIS, if your investment makes a loss, you can offset the loss against your tax bill for that year or the previous year.
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