What are the main benefits?
What are the conditions for the scheme?
If you are looking for investment in your start-up, investors are most likely to expect you to be SEIS registered. It is the most cost effective form of investment available in the UK at the moment. Investors spending £100,000 will receive £50,000 back initially in the form of a reduced income tax bill. In the event that your start-up fails and the investor does not receive any of their investment back, they will have a capital loss of 28% of the net investment proceeds (£50,000). So, in a worst case scenario, an investor spending £100,000 will receive back a total of £64,000 even if your start-up doesn’t succeed.
If your company is profitable the investor will not pay income tax on profits (dividends) or capital gains tax when the shares are eventually sold.
Our guest post on the Seed Enterprise Investment Scheme published by Venture Capital firm EC1 Capital can be found here.
We have a dedicated team of professionals ready to assess your eligibility for SEIS. Please contact us for further information.