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What are the tax benefits of investing in start ups?
The Seed Enterprise Investment Scheme, which was introduced by the Government to encourage investment into start up businesses and the early stage marketplace.
It doesn't matter what type of investor you are. From new online angel to experienced investor, you'll have your own criteria of what makes the perfect choice when it comes to investment opportunities.
Perhaps you look for evidence of a strong brand identity, solid financial forecasts, or a great team. Whilst all of these are necessary considerations, the business' SEIS compatibility should definitely feature close to the top of your list of criteria.
Well, depending on your personal circumstances, you could receive up to 64% tax relief on investments you make into eligible UK start ups.
We’ve put together a list of sites which can you give you a great overview of SEIS, as well as its features, benefits, and examples.
This site outlines and explains the benefits of the Seed Enterprise Investment Scheme for investors. From 50% income tax relief to capital gains tax exemption and more.
As you would expect, this page offers a wealth of SEIS-related information. It is, afterall, the HMRC's best-kept secret...Check out the scheme's background, as well as investment and investor requirements, how a company can qualify, and the procedures for using the scheme.
Although written for entrepreneurs and business owners, this still serves as an interesting read for investors as it explains what businesses need to look like in order to be eligible to offer the associated tax relief.
Why SEIS was set up
The main purpose for the Seed Enterprise Investment Scheme was to encourage investment into UK start up businesses in order to introduce more capital into this exciting asset class, thereby mitigating risk and enhancing returns.
To find out more about SEIS and investing into start ups as part of building your diversified portfolio, download our free investor’s guide to SEIS today.