The Seed Enterprise Investment Scheme (SEIS) provides a means for the unconnected to make investments in businesses. The investors, who are primarily non-residents of the UK, are able to claim up to 86.5% in tax relief on their investment. To qualify for the SEIS, investors must be UK residents or domiciled. The advance assurance from HMRC is required. An investor can prepare the application for tax relief with the help of an accountant.
Find Out Now, What Should You Do For Fast Seed Enterprise Investment Scheme (SEIS) Tax Relief?
To apply for SEIS, individuals must be registered in the UK. They can claim tax relief on the subscription shares they have invested in the scheme. Applicants must also be able to demonstrate that they are not in a trade that falls under the list of excluded trades. These include banking, insurance, money-lending, property development, commodities trading, legal services, and generating or exporting electricity. Once investors have verified their status, they can apply for the SEIS.
When claiming SEIS, investors should make sure that the company qualifies for the scheme. This can be done by obtaining the necessary documentation from HMRC. An investor must be a UK resident to qualify for the relief. However, it’s important to check whether the company is eligible before investing. The investor must also submit a SEIS form to their accountant to claim the relief. This document must be submitted to the HMRC before the investment is made.