There is no guarantee that this tax relief will apply to an investment on our platform, as conditions apply and you are recommended to take your own tax advice. Tax legislation is subject to change.
- Income Tax Benefit From SEIS/EIS Tax Relief
- Capital Gains Tax Exemption (CGT)
- Loss Relief
- Capital Gains Tax Deferral Relief
Tax relief of 30% can be claimed on investments (up to £1m in one tax year) giving a maximum tax reduction in any one year of £300,000, provided you have sufficient Income Tax liability to cover it.The shares must be held for at least three years from the date of issue or the tax relief will be withdrawn. SEIS/EIS allowances are allocated individually; therefore a married couple could invest up to £2 million each tax year.
Gains are exempt from CGT if the shares are held for at least three years and the income tax relief was claimed on them.
If shares are disposed of at a loss, the investor can elect that the amount of the loss, less Income Tax relief given, can be set against income of the year in which they were disposed or, on income of the previous year instead of being set of against any capital gains.
Payment of CGT can be deferred when the gain is invested in shares of an SEIS/EIS qualifying company. The gain can be made from the disposal of any kind of asset but the Investment must be made one year before or three years after the gain arose – connection to company does not matter. Unconnected investors are eligible for relief from both Income tax and CGT referral relief.
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