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 Income Tax relief of £5,000 is withdrawn, (£10,000 x 50%), see VCM36020. Income Tax relief of £7,500 attributable to the shares sold is not withdrawn.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|
|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*This is the SEIS Income Tax relief not withdrawn which remains attributable to the shares sold.