New Tax Efficient Investment Scheme Launched

The government has announced the creation of Seed Enterprise Investment Schemes (SEISs) which will be available from April 2012 and will run alongside the existing Venture Capital Trusts (VCTs) and Enterprise Investment Schemes (EISs). The aim of SEISs is to boost the amount of money invested in genuine start-up businesses so only businesses with total assets of up to £200,000 will be eligible. SEISs will provide investors with 50 per cent income tax relief on investments and exemption on capital gains tax for gains realised in 2012-13 which are reinvested in the SEIS. The limit will be £100,000 per year for individuals and a cumulative limit of £150,000 for qualifying companies.

John Bloxham