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HMRC internal manual

Venture Capital Schemes Manual

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

  • December 2012 an investor subscribes £100,000 for 50,000 shares in a SEIS company. Income Tax relief of £50,000 is given in 2012-13 applying the SEIS rate 50%.
  • January 2014 the investor sells all 50,000 shares for £60,000. Income Tax relief of £30,000 in respect of the £60,000 value received by the investor is withdrawn (£60,000 x 50%), see VCM36020. Income Tax relief of £20,000 is not withdrawn and remains attributable to the shares sold. The allowable loss is calculated as below.
Disposal proceeds   £ 60,000
     
Less cost £100,000  
Reduced by Income Tax relief* £ 20,000 £ 80,000
Allowable loss   £(20,000)

*This is the SEIS Income Tax relief not withdrawn which remains attributable to the shares sold.