SEIS Tax Relief

SEIS investors can claim tax relief for subscription shares on their income tax returns by completing an online self assessment form or paper return. Depending on the type of investment, taxpayers can claim up to 10,000 per year for each SEIS subscription share they hold. They must hold the investment for three years after issue, and any shares sold or disposed of before this period is up will not qualify for SEIS tax relief. For more information, see the following article.

Here Is A Method That Is Helping SEIS Tax Relief

The requirements for claiming SEIS tax relief depend on the investor. There are a number of requirements. The investor must be a UK resident or domiciled person, and the investment can be made before the disposal of the asset. Upon completing the three-year qualifying period, capital gains will be tax-free. The individual can also offset capital losses against their income, if any. This relief is available only to investors who hold shares in the same company as the business.

In order to qualify for SEIS tax relief, a shareholder must be a UK taxpayer. Neither the investor nor the company can control the company. A person cannot own more than 30% of the shares or the voting rights of a SEIS-eligible company. The investor must also not be related to the company or its directors. But the director of the company can still apply for SEIS tax relief. It must be kept in mind that the investor must be an individual with a UK residency.

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