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...

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