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HMRC internal manual

Venture Capital Schemes Manual

HM Revenue & Customs
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Seed Enterprise Investment Scheme (SEIS): SEIS disposal relief: introduction

Gains arising on disposals of shares in a SEIS company may not be chargeable to CGT. This relief is called exemption or SEIS disposal relief in this guidance. It applies only to shares attracting SEIS Income Tax relief.

The SEIS disposal relief legislation is at TCGA92/S150E and TCGA92/S150F. The principal features of the scheme are:

  • Gains on the disposal of SEIS shares acquired within the annual investment limit that applies for the Income Tax relief are exempt unless the Income Tax relief is reduced or withdrawn.
  • Losses on the disposal of SEIS shares are allowable. The amount of the capital loss is reduced by the amount of the Income Tax relief still attributable to the shares disposed of.
  • The ordinary share pooling and identification rules do not apply to SEIS shares. If there is a disposal of only some of a class of shares in a company, you use the SEIS share identification rules to establish whether the disposal relates to SEIS shares and, if so, which SEIS shares.