Seed enterprise investment scheme ― calculating clawback of relief

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

The Seed enterprise investment scheme (SEIS), like the Enterprise investment scheme (EIS), is designed to encourage individuals to invest money in shares issued by small qualifying unquoted companies.

HMRC have published some basic guidance on how SEIS works and further details in their manual at VCM30100 onwards. See the Seed enterprise investment scheme (SEIS) ― introduction guidance note for an overview of the scheme.

Withdrawal of SEIS relief

For guidance on situations where relief is withdrawn or reduced, see the Seed enterprise investment scheme ― withdrawal of relief guidance note.

There are anti-avoidance provisions to prevent an investor from obtaining income tax relief on their SEIS subscription, then selling the shares shortly afterwards. If the investor disposes of their shares within three years of issue, there will be a clawback of the income tax relief originally given. There are also clauses that treat the granting of call or put options over the shares as a disposal.

The relief that is clawed back is limited to the relief originally claimed.

The more

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Personal Tax

Simple assessments

Simple assessmentsFrom 2016/17 onwards, HMRC has the power to make a ‘simple assessment’ of the taxpayer’s income tax and / or capital gains tax liability outside of the self assessment system. As HMRC already receives significant amounts of information on the income received and tax paid by

14 Jul 2020 13:40 | Produced by Tolley Read more

Owner-Managed Businesses

Repairs and renewals

Repairs and renewalsThe key consideration in determining whether expenditure on repairs and renewals is allowable as a deduction for tax purposes is whether it is capital or revenue in nature. In some cases, it can be relatively straightforward to identify revenue repairs. HMRC provides the

14 Jul 2020 13:23 | Produced by Tolley Read more

Employment Tax

Income tax paid on behalf of employee

Income tax paid on behalf of employeeIntroductionEmployers may wish to make payments of employment income to an employee / director without the employee suffering a tax or NIC cost on that pay. In other words, the employer wants to pay an amount net of tax and NIC. In some instances, often with

14 Jul 2020 11:58 | Produced by Tolley in association with Paul Tew Read more

��Ӱ��