SEIS explained: how UK investors get 50% back, in 60 seconds
Why would anyone put £10,000 into a brand new startup? In the UK, one reason is SEIS, the Seed Enterprise Investment Scheme.
Invest £10,000 and you can claim up to 50% back against your income tax, so the real cost can be £5,000. Hold the shares for at least 3 years, keep the relief, and there is no capital gains tax on the profit when you sell.
The limits: an investor can claim on up to £200,000 a year. A company can raise up to £250,000 in total.
Conditions apply. This is not tax advice. Source: GOV.UK.
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