Profits earned on shares held for more than three years will be exempt from capital gains tax. If capital gains are realised before three years have expired, but re-invested into qualifying SEIS shares, then they will also be exempt from capital gains tax. The annual limit for these is also £200,000.
There are a number of conditions in place for SEIS, including:
- A limit of £200,000 which can be invested in a single tax year
- Investors cannot hold more than a 30 per cent stake in the company
- The company must have a permanent UK base
- The company must have fewer than 25 employees
- The company must trade in an approved sector, which generally excludes the financial sector
Our experts are highly experienced in advising individuals looking to invest in start-ups on how to make the most of the tax reliefs available to them.
To find out more about how our leading firm of accountants in Stratford-upon-Avon and Warwickshire can help you, please contact us.
