Reduced risk equity investment.

Equity investment in a start up business has winners and losers. HMRC cover part of the downside risk with tax relief under the Seed Enterprise Investment Scheme – SEIS.

Invest £1, get 50p back.
Under SEIS, for every £1 you invest, your income tax bill is offset by 50p, or the whole £1 with carry back to 2012-3 – that’s right, if carry back applies to you for 2012-3, your investment, in effect, might be at no cost. If the shares appreciate, capital gains tax relief is at the same 50% or100% rates. Loss can be set against either income or capital gains tax. There are qualifications: for individual investors, for the company and the shares. Biebuyck Technologies is approved by HMRC to issue SEIS shares. Additionally, share documentation on issue must be specifically cleared with HMRC.

Excluded as individual investors are: employees of the company, anyone with a substantial (30%) existing interest, related investment and loan arrangements and tax avoidance schemes. Maximum investment is £100,000 annually. Maximum stake is 30%. And, of course, you can only offset against what you owe in UK tax.

The HMRC website has full information at – search “business tax investment schemes”. Your professional adviser should understand how SEIS might work in your individual circumstances. This information is no substitute for professional advice.

If this is of interest, please get in touch, using the contact form on this site.