SEED ENTERPRISE INVESTMENT SCHEME
Start-up companies can receive help from the government in attracting new investment.
Investors in start-up companies could claim 50% of their investment back through tax relief.
The Seed Enterprise Investment Scheme (SEIS) will allow investors who invest up to £100,000 to claim the 50% tax relief.
In addition, the other advantages are:
If the investor makes any gains in the 2012/13 tax year, the tax can be deferred if the proceeds are invested in SEIS
If the investment is held for at least 3 years, there is no tax to pay on any gain made
The scheme should enable start-up companies to attract more investors by emphasising the tax advantages.
Another point to mention to potential investors is that tax relief through SEIS may be more attractive than tax relief on pension contributions for 50% taxpayers (which are now limited).
If the start-up company needs more than £150,000 (the total allowed for the company) there is still the Enterprise Investment Scheme (EIS), which allows for 30% tax relief for the investor.
If you are a start-up looking for investment, let us know and we can talk you through setting up SEIS or EIS.