Seed Enterprise Investment Scheme (SEIS)
The Seed Enterprise Investment Scheme is a new package of tax advantages designed to attract capital to small companies. For investors, the tax reliefs include 50% income tax relief and 28% Capital Gains Tax relief (for gains in the 2012/13 tax year) will be available for investments of up to £100,000 per year offering a total of 78% tax relief. Tax free gains on investments held after three years.
The SEIS has been confirmed in the Budget for the tax year 2012/13. The introduction of the Seed Enterprise Investment Scheme, providing even greater tax benefits than EIS, but restricted to a total of investment of £150,000 in smaller companies. Participating companies must not have already raised capital through VCT or EIS, and they must have gross assets of less than £200,000 and fewer than 25 employees before the investment.
Oxford Capital, though excited about the opportunity offered to investors by the Seed Enterprise Investment Scheme, will not be offering a dedicated investment opportunity. Though we nurture & coach many small and start-up companies the current limits on the SEIS mean these businesses are generally too early-stage for our investment strategy. On an ad-hoc basis investments in small businesses might qualify for the enhanced tax benefits and accordingly these will be made available to investors as part of our Oxford Gateway EIS Portfolio or Co-Investment Programme.
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