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HMRC internal manual

Venture Capital Schemes Manual

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HM Revenue & Customs
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SEIS: income tax relief: introduction: eligibility for SEIS income tax relief

ITA07/S257AA

An investor is eligible for income tax relief in respect of shares issued to him or her where particular requirements are met.

The investor need not be UK resident but must have UK income tax liability against which to set the relief. The shares must be held for a period of at least three years from the date of issue for relief to be retained. If they are disposed of within that three year period, or if any of the qualifying conditions cease to be met before the termination date for the shares (see VCM31140), relief will be withdrawn or reduced (see VCM36000+).

There are requirements which apply to the investor (VCM32000+), general requirements that include requirements as to the purpose of the issue of shares and the use of money raised (VCM33000+) and requirements that apply to the issuing company (VCM35000+). These requirements are in Chapters 2 to 4 of ITA07/Part 5A.