Full SEIS relief to run until 2014
HMRC's full Seed Enterprise Investment Scheme relief is set to run for a further 12 months to April 2014.
The Revenue deny that this is an extension of the full relief, as there were already provisions for it, but the lengthier timeframe was highlighted by HMRC's senior policy adviser on venture capital schemes, Kathryn Robertson, during a recent presentation in London.
Individuals can avoid paying CGT on money put into companies before April 2014 by using a "carrying back" process, although there will be a limit on the amount being carried back.
According to Gabelle, the investment limits for this scheme are "disappointingly low", but SEIS will secure vital funds for businesses in the early stages which might not be available from a bank.
"The main point which I think needs to be explained is that the extension is not really an extension in the sense that it something new as the provisions were always there," said Gabelle tax adviser Paul Howard.