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 Income Tax relief of £30,000 in respect of the £60,000 value received by the investor is withdrawn (£60,000 x 50%), see VCM36020. Income Tax relief of £20,000 is not withdrawn and remains attributable to the shares sold.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|
|Reduced by Income Tax relief*||£ 20,000||£ 80,000|
*This is the SEIS Income Tax relief not withdrawn which remains attributable to the shares sold.