Pixel

SEIS in 2018

Gary Green
Gary Green
April 7, 2015

Many of our clients are asking whether anything significant has changed regarding the SEIS scheme in 2018.

Are there any major changes to the SEIS scheme in 2018? The short answer is ‘no’, meaning that the government is still supporting a widely popular funding option for new companies.

Rule Changes

There are a couple of minor changes and clarifications that we'll address now.

One of the recent changes allows investment raising from SEIS to EIS immediately. Previously, you had to wait until 70% of the SEIS finds were spent first. This can give a wider appeal to multiple investors, and make new companies reach for a bigger investment target than previously imagined.

Certainly, conversations can start sooner about getting company funding of more than the £150,000 SEIS threshold. However, there is now a time limit of 12 years since the first commercial sale in which to receive EIS or VCT funding.

"Independent" Investors

The one other change to SEIS may potentially cause a few issues. It is rather vaguely worded and unclear who it is trying to target. It says that investors have to be "independent" from the company at the time of the first share issue.

We contacted HMRC for further clarification. Our understanding, at this moment, is that you can't become a director of the company prior to being given the SEIS shares.

This could impact on who incorporates the company. It may even lead to newly formed companies being scrapped and recreated just to cater for this new rule.
It's hard to see how this rule is an improvement. Investors are already prohibited from benefiting from SEIS tax relief if:

  • They hold more than the 30% of the shares, and...
  • The company starts to trade prior to the share issue.

We also are pleased that inheritance tax planning is still available. Up to £100,000 per year is now available for SEIS tax relief within two years instead of seven.

Interested in our services?
Fill in your details and a member of our experienced team will be in touch shortly to discuss your needs.
Contact Form Demo (#1)
We adhere to strict GDPR rules and do not reveal or sell your data to any third-parties. For more, please read our Privacy Policy.
Latest Insights
October 23, 2023
PAYE Investigations

Dive into the world of PAYE investigations. Uncover the facts, implications, and insights in this informative blog

September 29, 2023
London-based accountancy business acquired by Key Business Consultants

Exciting Merger Alert: London's Reed Taylor Benedict & Benedict Leff Accountants Acquired by Key Business Consultants.

September 18, 2023
Tax Tribunals – An Overview

Dive into the realm of Tax Tribunals: A comprehensive overview shedding light on this crucial aspect of taxation.

September 2, 2023
What Is A COP8?

Learn about COP8, a tax-related Code of Practice issued by HMRC for suspected tax avoidance cases. Discover when COP8s are used and the penalties associated with them.

August 20, 2023
HMRC Compliance Checks

Navigate the complexities of HMRC compliance checks confidently. Our comprehensive guide covers everything you need to know about handling tax inspections and more.

August 6, 2023
Tax Evasion and Tax Fraud

Untangling the complexities of tax evasion and fraud. Delve into our comprehensive guide to understand the differences, consequences, and preventive measures.

June 18, 2023
Which Jobs In The UK Have The Best Salary Growth Potential?

Explore the top UK jobs with the highest salary growth potential. Uncover promising career paths and industries that offer substantial earning potential.

May 23, 2023
How To File Dormant Accounts Through Companies House

Learn the step-by-step process of filing dormant accounts through Companies House with our comprehensive guide.

May 19, 2023
Customs Declaration Service (CDS) and VAT

Discover how the Customs Declaration Service (CDS) and VAT intertwine in this insightful blog article.

View Our latest insights »
Get the latest UK tax & business news and guidance delivered straight to your inbox
Newsletter Form (#2)
We care about the protection of your data. No spam. Unsubscribe anytime.
Copyright © 2022 Key Business Consultants LLP. Reg: E&W OC389322
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram