SEIS Relief
Upfront Income Tax Relief | Up to 50% |
Annual Limits 2023/2024 |
£200k plus carry back allowed
1
|
Tax free exit | Yes |
Capital gains tax relief |
Up to 14% saved
2 |
Tax free dividends | No |
IHT Free |
Yes (after 2 years)
3
|
Share loss relief | Yes |
Minimum holding period | 3 years |
for SEIS share issues on or after 06 April 2023, the annual investor limit was increased to £200,000 from the previous limit of £100,000
depending on the nature of the asset and the date of disposal
the value of the shares may qualify for 100% business relief (BR) from inheritance tax (after a minimum two-year holding period, unless the shares are “replacement business property”)
Step 1 | The SEIS Company is Formed (or already trading) |
Step 2 | Investor subscribes for qualifying shares in the SEIS company |
Step 3 | Company share certificates are issued |
Step 4 | The SEIS company submits an SEIS 1 form to HMRC (The company cannot submit the SEIS 1 form until it has carried on a qualifying trade or qualifying activities for at least 4 months or alternatively, in the case of SEIS, spent at least 70% of the amount raised) |
Step 5 | HMRC issues an SEIS 2 form to the company |
Step 6 | An SEIS3 form is issued to the investor |
Step 7 | The investor completes form SEIS 3 and claims tax relief |
If you pay tax solely through PAYE, you will need to file a tax return in order to claim tax reliefs. You can find more about the process of registering and filing a return on HMRC's website.
You don’t need to fill out a separate tax return for each individual investment. Once deployment is complete, you simply go to complete a return as you would for a single investment, then add the information about your Amersham investments we provide.
You don’t need to include copies of the SEIS 3 certificates for each individual investment with your tax return. But HMRC do reserve the right to request the form. We hold copies of all SEIS 3 certificates on your Investor Dashboard. As our fund deploys for, roughly, a 12 month period, you will receive SEIS 3 certificates from Amersham throughout this deployment. You can begin to make claims as soon as the first SEIS 3 certificates appear in your dashboard, or you can wait till the end of deployment to download all of the information and make your claim in one go.
Tax relief applies to the year in which the shares are issued, regardless of when the SEIS 3 form is issued. But, this can be carried back to apply to the previous tax year. This flexibility, along with the ability to invest at any time of year, is a significant advantage of so-called “unapproved” SEIS funds over “approved” funds (which issue a single SEIS 5).
You can only claim on capital that has been invested into businesses. Amersham deploys 100% of all investments. If your financial adviser charges a separate fee, the total charges could be 5% and therefore 95% of the investment would be deployed.