SEED Enterprise Investment Scheme

SEED Enterprise Investment Scheme

The Enterprise Investment Scheme (EIS) was introduced by the government in 1994 to encourage private investment in smaller higher-risk trading companies by offering a range of tax reliefs to investors who purchase new shares in those companies.

The Seed Enterprise Investment Scheme (SEIS) was introduced by the government in 2012 to encourage private investment in small and early stage start-up companies and offers tax benefits including 50% Capital Gains Tax relief and 50% Income Tax relief on up to £100,000 p.a. investment.

A working example of the benefits:

If you have £100,000 of salary at the 40% rate and a capital gain of £100,000 you would be liable to pay the following tax:

Income Tax (IT) on £100,000 @ 40% £40,000
Capital Gains Tax (CGT) on £100,000 @ 28% £28,000
TOTAL TAX DUE £68,000

If an investment of £100,000 is made in to SEIS shares the position would be:

IT on £100,000 @ 40% £40,000
IT relief on £100,000 @ 50% (£50,000)
IT DUE Nil
CGT on £100,000 @ 28%£28,000
CGT relief on £100,000 @ 50%(£14,000)
TOTAL CGT DUE£14,000

Our portfolio of SEIS opportunities is unique.

As a shareholder in the SEIS qualifying company you will benefit from:

Income

Being first in line to be paid from any net income received by the company up to a return of 120% of your investment and a continuing share of the profits thereafter.

Guaranteed release

A United Kingdom distributor already being attached to the film meaning a guaranteed United Kingdom release.

Fees

The SEIS company can earn fees from the ventures it invests in from the offset, i.e. it is not wholly dependent on profits being made for it to secure income.

Value

The value of pre-sale contracts, government Tax Credits and grants and other assets sitting within the SEIS company can provide added security.

Current SEIS projects:

Click poster for more information.

Previous SEIS projects:

In order to qualify for SEIS, a company must:

Employees

have fewer than 25 employees

Assets

have no more than £200,000 in gross assets

Investments

not have had any investment from a Venture Capital Trust (VCT) or issued any shares in respect of which it has submitted an EIS compliance statement

Trade

Any trade being carried on by the company at the date of issue of the relevant shares, must be less than 2 years old at that date.*

History

the company must not have carried on any other trade before it started to carry on the new trade

Funds

not receive more than £150,000 in total under the scheme.

* That condition applies whether the trade was first begun by the company, or whether it was first begun by another person who then transferred it to the company. (Please note: the company need not have started trading when it issues the shares)

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