The Seed Enterprise Investment Scheme (SEIS) offers some of the most generous tax reliefs available in the UK, designed to encourage investment in very early-stage startup companies.

SEIS is like the younger sibling of the Enterprise Investment Scheme (EIS), but focused on brand new businesses and with even greater tax breaks.

What are the tax reliefs?

Income Tax Relief: You can claim an income tax credit of 50% on the amount you invest, up to an annual investment limit of £200,000.
Capital Gains Tax Reinvestment Relief: You can exempt 50% of a capital gain from tax if you reinvest the gain into an SEIS-qualifying company.
Capital Gains Tax Exemption: Any profit you make when you sell your SEIS shares is completely free from Capital Gains Tax, provided you have held them for at least three years.

Like EIS, you will need an SEIS3 certificate from the company you invest in before you can claim the relief on your tax return.

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