SEIS: Good News for Investors & Start Ups

From small seeds grow great things and that’s certainly the thinking behind The Seed Enterprise Investment Scheme (SEIS). The scheme, brought in place by the Finance Act 2012, shall provide tax breaks for investors in new companies therefore encouraging investment in UK business.

Under SEIS investors can receive 50 per cent tax relief, a huge carrot to dangle in front of prospective backers. Naturally there are restrictions upon which companies qualify for investment. The company:

• Must not employ more that 25 people
• Must not have received more than £150,000 investment under the scheme already
• Must not already have assets worth more than £200,000

Further terms of note:

• The investment maximum is £100,000 per investor
• Investments can be spread over numerous companies
• Company Directors CAN invest in their own company
• Investor stakes can not exceed 30 per cent of the company

Chancellor George Osborne explains that the aim of SEIS is to “stimulate entrepreneurship and kick start the economy”. For more information on SEIS visit the official site.

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