Analyzing graph growth

Commencement Of Seed Capital Raise

We are please to announce that as of Monday 16th of November we shall commence our first seed capital raise. At the outset we shall be raising initial financing of £150,000 via a private equity placement.

Early stage investors will be able to take advantage of the various tax reliefs offered by the Seed Enterprise Investment Scheme.

The Seed Enterprise Investment Scheme (SEIS) was introduced by the UK government in 2011. Its purpose was to stimulate the UK economy by encouraging investment into small and early-stage UK companies. In order to incentivize individuals to invest into these higher risk companies the SEIS offers a range of tax reliefs which are aimed to reduce investor risk whilst simultaneously increasing  the reward potential.

The tax reliefs available are arguably amongst the most attractive in the world. In fact, a higher rate taxpayer taking advantage of all the tax reliefs available would reduce their total loss potential to just 14.5p in every pound invested.

The following list details the tax reliefs available:

SEIS Income Tax Relief

You can claim back up to 50% of the value of your investment in the form of income tax relief. Therefore, if you make an investment of £10,000, for example, you can save £5,000 in income tax. •

SEIS Capital Gains Tax Relief:

If you sell your shares after having held them for at least 3 years, then you may be able to pay no Capital Gains Tax on your investment gains. •

SEIS Capital Gains Tax Reinvestment Relief:

If you choose to reinvest gains from other non-SEIS investments into an SEIS eligible company, you will receive 50% Capital Gains Tax relief on the original investments. Therefore, if a prior investment has given you a gain of £10,000, all of which you decide to reinvest in an SEIS eligible company, 50% of the £10,000 gain will be exempt from Capital Gains Tax. •

SEIS Loss Relief:

If the business performs poorly and you lose money on your investment, you may claim loss relief. The loss relief you can claim is at the equivalent rate to the highest rate of income tax you pay. So if you pay income tax at a rate of 45%, you can claim up to 45% of your net loss in income tax relief. For example, if you make a £10,000 investment and the business fails meaning your investment is no longer worth anything you could claim loss relief.  Firstly you could claim the 50% income tax relief (£5,000 in this example). Then of the remaining £5,000 you can claim 45% income tax relief on this £5,000 loss, so your total loss is only £2,750.

Capital Gains Reinvestment Relief

If you choose to reinvest gains from other non-SEIS investments into an SEIS eligible company, you will receive 50% Capital Gains Tax relief on the original investments. Therefore, if a prior investment has given you a gain of £10,000, all of which you decide to reinvest in an SEIS eligible company, 50% of that £10,000 gain will be exempt from Capital Gains Tax.