SEIS

Question 1

What does SEIS stand for

Answer 1

Seed Enterprise Investment Scheme

Question 2

What’s does SEIS invest in?

Answer 2

Direct investment into startup companies for an equitable stake in the company.

Investments in unquoted companies to help business establish

Question 3

Are dividends from a SEIS taxable?

Answer 3

Yes they are liable for income tax

Question 4

How much income tax relief do you get on a SEIS?

Answer 4

50% up to max investment amount of £200,000

Question 5

How is income tax relief claimed on a SEIS?

Answer 5

It’s a tax reducer

There must be a tax liability to reduce

Relief can be carried back to previous tax year

Question 6

How long do you need to hold a SEIS to get the income tax relief

Answer 6

3 years

Question 7

Is CGT payable on a SEIS?

Answer 7

No CGT if held for three years

Question 8

Do you get reinvestment relief on a SEIS?

Answer 8

No

But you do get a part exemption if you reinvest gains into a SEIS. You immediately get 50% exemption and the other 50% is payable

Losses can be registered

Question 9

Is a SEIS exempt from IHT?

Answer 9

100% business relief after 2 years