Seed Enterprise Investment Scheme or SEIS is a UK government initiative that is aimed at addressing the growing funds crisis effecting new start ups in the UK, and the reluctance of new investors in helping out small businesses fearing risks.
The spirit of entrepreneurship has been keeping the flag flying for high tech start ups, which have struggled to establish themselves, and survive in the market against heavy odds. In the scheme their problems will be redressed to a great extent.
An investor can fund a new company to the extent of £150,000. The company should not be more than two years old, and should be having an estimated net assets position not exceeding £200,000. By investing in the new company, the investor gets a two year period within which he gets a 50 % tax exemption. In the event he sells the SEIS, the sale proceeds will not attract capital gains, which yield another 28% tax gain.
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