Benefits of SEIS Investing
The Seed Enterprise Investment Scheme (SEIS), established in 2012, is a UK government initiative designed to stimulate economic growth and foster innovation whilst encouraging investment in early-stage start-ups by offering tax incentives to investors. To offset the high-risk nature of early-stage investing, the UK offers appealing tax incentives to investors. Key benefits to SEIS investors include:
1. Tax Relief: Generous tax relief of up to 50% of the amount invested provided certain conditions are met. Individual investors have an annual investor limit of £200,000.
2. Capital Gains Tax Exemption: Exemption from capital gains tax on profits made from the disposal of SEIS shares, provided the shares have been held for at least three years and meet the SEIS criteria.
3. Loss Relief: If a loss is made on the sale of SEIS shares, investors can offset any losses against their taxable income or capital gains.
4. Inheritance Tax Relief : 100% Inheritance tax relief on the value of SEIS shares if they have been held for at least two years.
5. Capital Gains Reduction: 50% tax reduction for investors when taxable profits from a non SEIS-eligible company are reinvested into an SEIS-eligible company.
Alongside the tax incentives investors benefit from a host of addtional advantages including the potential for high returns resulting from being one of the first investors into early-stage companies and portfolio diversification through allocating funds to early-stage start-ups alongside more traditional asset classes.
With this in mind, Angels Den are delighted to announce the launch of our second SEIS Fund and extend an exclusive invitation for you to join us on this exciting venture. Building on the outstanding success of our inaugural SEIS Fund, which achieved a remarkable 46% return over the past five years, we are now gearing up for an even more impressive performance with our second fund. If you are interested in being part of our second SEIS Fund or would like to receive additional information, please email us at IR@angelsden.com.
Written by Aaron Gutteridge, Investment Associate at Angels Den, Europe and UK’s largest angel-led finance platform helping early stage companies and SMEs get easy access to growth capital.
Disclaimer: The information provided herein is for informational purposes only and should not be construed as financial, investment, or trading advice. It is not intended to serve as a recommendation to buy or sell any asset or investment product. Always do your own research and consult with a qualified financial advisor before making any investment decisions. Past performance is not necessarily indicative of future results. The author and the platform assume no responsibility for any investment losses or gains made as a result of the information presented herein.