Wealthy investors are being offered more incentives to put money into start-up ventures as part of the government’s push to promote Silicon Valley-style “angel investment”. A waiver on capital gains tax (CGT) for investors in early stage enterprises is being extended for another year, a senior official at HM Revenue & Customs said. The move should increase the number of people benefiting from George Osborne’s seed enterprise investment scheme (SEIS) – a package of measures to aid angel investment – announced in last year’s Budget. By Jonathan Moules, FT Enterprise Correspondent Full story.
In 2013, The Share Republic was open for subscription for £150,000 in return for 10% of equity under SEIS scheme. This implies that the investor will get 50% income tax relief on his/her investment. In addition, if the investor sells share during the tax year, it can also claim capital gains tax relief on the amount invested in the Share Republic under the SEIS scheme. To illustrate in figures, if you are a 50% tax payer and have made profit by selling shares this tax year, if you invest £100 in the share republic, you can claim £78 back on your tax return. It effectively means that you get £100 worth of shares at £22. For an SEIS calculator, click here.