My clients A&B are to set-up newco D Ltd with investor C. SEIS status will be obtained.
A&B will each own 40% of the 100 x £1 shares, purchased at par. C will pay £50k/£100k (TBC) for the remaining 20%.
C wants to be bought out in 12-18 months. If A&B purchase the shares, I assume that this 20% won’t be classed m as a SEIS investment for relief purposes?
Thinking long-term, would it be better for a co buyback of C’a shareholding, so that for an eventual sale? The full shareholding of A&B will then be classed as SEIS investment.
Appreciate any thoughts / pointers.