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HMRC internal manual

Venture Capital Schemes Manual

Seed Enterprise Investment Scheme (SEIS): re-investment relief: income tax relief restricted

TCGA92/SCH5BB/PARA2 (1) & (2)

The restriction will usually apply when an investor subscribes more than the amount on which Income Tax relief is available. Income Tax relief in any year of assessment may not exceed tax at the SEIS rate on £100,000.

If the investor claims SEIS Income Tax relief for amounts subscribed for shares which exceed £100,000, you limit the amount of SEIS expenditure which may be set against the gain, see VCM45020, using the formula:

SA x £100,000


SA = the SEIS expenditure before applying the above formula

TSA = the total of amounts subscribed for shares issued in the tax year in respect of which the investor is eligible for and claims SEIS relief for that year

This is illustrated by the example at VCM45060.