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New tax year - new SEIS rules

WHAT'S NEW?

With the start of the new tax year around the corner (on 6th April if you need a reminder! 😱), it is time to make sure that you are aware of the new updates the HMRC has announced in regards to the SEIS  tax relief scheme.

The Seed Enterprise Investment Scheme (SEIS) assists small, high-risk companies in their early stages of development to secure investment by granting specific tax benefits to investors who pay UK taxes. This creates a more appealing investment opportunity for your company by offering an incentive to potential investors.

NEW LIMITS FOR COMPANIES

What are the big new SEIS changes*?

  • Companies can now raise £250,000 in SEIS – previously it was only £150,000 → Yeah! 🎉 
  • Companies can now raise SEIS within the first 3 years of trading – previously it was only 2 years.
  • Companies must now have less than £350,000 in gross assets to be able to raise SEIS – previously that was £200,000.

*The changes to the SEIS rules are not certain as legal and parliamentary processes are yet to be completed. It is important to note that until these processes are finalized, the changes cannot be guaranteed to come into force. It is also worth mentioning that HMRC cannot confirm whether the changes will be applied retrospectively if any delays occur during the completion of the necessary processes.

NEW LIMITS FOR INVESTORS

Tax relief from the Investors’ side: 

  • Currently, the SEIS investment limit for investors was 100k per year but from 6 April that will increase to 200k per year.
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Photo by frOm PxHere

ASK HMRC...

To all startups and SMEs, make sure to submit all your applications via the HMRC portal directly from now on – no email forms anymore! – thanks god!

If you are not sure if you are likely to qualify for SEIS, you can ask HMRC before you go ahead and apply for SEIS Advance Assurance. This will let you know if you meet the criteria and give investors a peace of mind as HMRC have provisionally agreed that your venture is eligible for SEIS.

OR ASK US!

As you know, we believe in empowering entrepreneurs and we think it is important that you can be as self-sufficient as possible. So we hope that you found this article useful and wish you all the best with your SEIS applications this year 💪 

Should you want our support none-the-less, we would be very happy to support you with your Advance Assurance or SEIS application. Reach out to Daniela if you have any questions!

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