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Draft Finance Bill 2012 Seed Enterprise Investment Scheme

From 6 April 2012, subscriptions by individuals for shares in new start-up companies that meet the qualifying conditions, will attract income tax relief of 50 per cent for subscriptions for shares of up to £100,000 per annum, irrespective of the investor’s marginal tax rate; exemption from capital gains tax on the disposal of such shares; and for investments made in the 2012/13 tax year only, an exemption from capital gains tax on gains also arising in 2012/13 which are invested under the SEIS (the draft legislation for this has yet to be published). Companies that qualify for SEIS investment will be able to raise up to a cumulative total of £150,000 under the scheme. The rules that govern SEIS companies are similar to those for the EIS. The qualifying company must have gross assets of not more than £200,000 and must have fewer than 25 full-time equivalent employees before investment.

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