The SEIS was introduced for a limited five year period from 1 April 2012. The SEIS has now been made permanent, with the income tax and capital gains tax reliefs applying as shown below for all future years.
Rate of income tax relief
Maximum investment qualifying for income tax relief
Gains exempt from CGT relief on investment in SEIS shares:
Venture Capital Trusts (VCTs)
Investing in VCT shares gives the taxpayer 30% income tax relief on up to £200,000 invested per tax year, and the shares are generally exempt from capital gains tax when sold. However, the Government thinks that VCTs have been abused, so the following changes will be made from 6 April 2014:
tax relief is withdrawn if the shares are disposed of within five years;
the VCT will not be permitted to return capital to its members within three years of the shares being subscribed for; and
VCT investments that are linked to share buy-backs will be denied tax relief.