Unlike EIS Funds there is no such thing as an HMRC ‘Approved’ SEIS Fund and therefore by default all SEIS Funds are ‘Unapproved’. However, all the SEIS companies Kin Capital invest in have received HMRC advance assurance that they qualify. The tax reliefs are determined by the amount and timing of capital invested into underlying investments within the Fund by the manager, not when a subscription is made into the Fund
SEIS qualifying investments convey 50% income tax relief, tax-free capital gains, 50% of a capital gain tax liability can be wiped out, business relief (inheritance tax free) and potentially loss relief. Depending on personal circumstances, assuming all the relevant tax reliefs are claimed and retained, it is possible to reduce the cost of £1 invested into a SEIS company to as little as 13.5 pence (for an additional rate tax payer).
SEIS is designed to provide seed capital to businesses that might struggle to raise finance if it wasn’t for the tax incentives. To qualify the businesses must have less than £200,000 of ‘gross assets’ and fewer than 25 employees and been trading for less than two years. Investors must have the tax-liability to cover the claimed relief. The maximum investment in one year is £100,000 per investor per tax year, so the maximum income tax relief relief that can be claimed is £50,000. There is also a ‘carry-back’ facility under which the shares can be claimed as if purchased the year before and thus claim a refund from HMRC on tax paid the year before. More information about SEIS can be found on the Gov.uk website.
See how SEIS Funds compare with their bigger ‘EIS’ sibling, more information can be found about EIS Funds here.
To view our currently available SEIS Fund offers, visit the Open Offers section of our website.
Please note Kin is unable to give taxation or financial advice and strongly recommends private investors speak with a suitably qualified independent financial adviser. Your capital is at risk and SEIS Funds are high risk investments. They will not be suitable for all investors. Tax benefits received depend on individual circumstances and may be withdrawn at a later date.
Join Kin Capital and our 2018/19 fund managers in London, Manchester and Birmingham. Read more...
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LAUNCHING SOON - technology & e-commerce EIS fund, offering 100% tax relief, from industry leading venture capitalist Fuel Ventures More >
OFFER OPEN - The most popular growth EIS Fund for the last three tax years, according to figures published by independent commentator Tax Efficient Review. More >
OFFER OPEN - invest in growth businesses within the Leisure & Hospitality market through Imbiba Leisure EIS More >
OFFER OPEN - invest in a portfolio of primarily early stage SEIS qualifying companies across different sectors including digital technology, life sciences and consumer goods More >
OFFER OPEN - invest in sustainable energy companies eligible for Business Relief (BR) through Guinness Sustainable Infrastructure Service More >
OFFER OPEN - invest in a portfolio of primarily early stage EIS qualifying companies across different sectors including digital technology, life sciences and consumer goods More >