In November 2011, George Osborne hatched a plan to give investors up to 78 per cent tax relief on investments into small start-up companies. He called it the Seed Enterprise Investment Scheme (Seis).
SEIS, which kicked off in April 2012, offers upfront income tax relief of 50 per cent, and an exemption from capital gains tax if the investment comes from gains realised in that tax year. On top of this, if the company fails, losses can be offset against an income tax liability.
According to Doug Richard, top-rate taxpayers who combine all of these reliefs can end up with 100.5 per cent of their initial investment protected. “I had HMRC check the numbers,” he adds. Read full article by Duncan Robinson FT Financial Services 12 September 2012.