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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: part-disposal: example

  • December 2012 an investor subscribes £100,000 for 100,000 shares in a SEIS company. Income Tax relief of £50,000 is given in 2012-13.
  • January 2014 the investor sells 25,000 shares for £10,000. Income Tax relief of £5,000 is withdrawn, (£10,000 x 50%), see VCM36020. Income Tax relief of £7,500 attributable to the shares sold is not withdrawn. The allowable loss is calculated:
Disposal proceeds   £ 10,000
Less cost £25,000  
Reduced by Income Tax relief* £ 7,500 £ 17,500
Allowable loss   £( 7,500)

*This is the SEIS Income Tax relief not withdrawn which remains attributable to the shares sold.