I was under the naive impression that the tax rules governing EIS and SEIS were very similar despite there being separate legislation for the two. Obviously SEIS has extra rules governing the size of the business and being a start-up. However, I have been looking at SEIS more closely and now relaise that there are quite a lot of seemingly trivial yet important differences between the two in areas you might not expect. For example
1. EIS allows paid directors under certain circumstances but SEIS does not.
2. Under EIS the cash must be spent within 2 years. Under SEIS it must be spent wtihin 3 but 70% before the SEIS1 is submitted.
Does anyone know where I might find a summary of all the differences between the two? I suspect I have overlooked some
Replies (2)
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Possibly best to read through the legislation yourself?
....as you've already misquoted a number of things in the examples you've cited. SEIS does allow paid directors. In EIS the cash has to be "employed" within a certain time period whereas in SEIS it has to be "spent"; and those two things are not the same. And it's not inevitably the case that 70% of the SEIS funds must be spent before the SEIS1 can be submitted.
A usefull link
A bit out of date perhaps but try this
http://www.seedrs.files.wordpress.com/2012/06/eis-and-seis-table-june-20...
Ford