HM Treasury sets out draft SEIS legislation in the Finance Act 2012
We reported last week on the Chancellor’s announcement in his Autumn Statement of a new tax-advantaged scheme to encourage investment in start-up business, to be called the “Seed Enterprise Investment Scheme” (the SEIS). HM Treasury has today published the draft Finance Bill 2012 containing details of the SEIS and its operation. The SEIS will, in the Treasury’s description:
“- apply to smaller companies, those with 25 or fewer employees and assets of up to £200,000, which are carrying on or preparing to carry on a new business;
- give income tax relief worth 50 per cent of the amount invested to individual investors with a stake of less than 30 per cent in such companies, including directors who invest in their companies;
- apply to subscriptions for shares, using the same definition of eligible shares as EIS (which it is proposed will be widened in Finance Bill 2012);
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