SEIS and rollover relief made permanent
Chancellor George Osborne announced a Budget for investment yesterday, so a lot of attention went into the tax treatment for early-stage investments in start-ups.
The Seed Enterprise Investment Scheme (SEIS), introduced as a temporary measure two years ago, and the capital gains tax 50% reinvestment relief have now been put on a permanent basis.
The indefinite extension of SEIS will allow growth of structured schemes giving investors access to such investments with a spread of risk over a basket of companies.
Investors gain income tax relief of 50% on a maximum investment of £100,000 and also benefit from 50% capital gains tax relief on any reinvestment of assets [TIIN] in an SEIS qualifying company.
The tax reliefs combined limit the exposure of higher rate taxpayers to 22.5% of their investments.
Patrick King of MHA MacIntyre Hudson said...