“SEIS makes the tax breaks on ISAs look miserly,” or says Jeff Lynn, co-founder and CEO of Seedrs. “Yet,” he says, “few investors have even heard of it.”
Mr Lynn is not wrong. The Seed Enterprise Investment Scheme offers investors 50 per cent income tax rate, even if they are not paying income tax at that rate. There is also potential for a further 28 per cent tax relief via an exemption on capital gains tax. Click here for more . For encouraging entrepreneurism, it is a bold scheme.
Mr Lynn says: “No other major country offers such significant reliefs to investors in start-ups.”
He continues: “It is ironic that the UK has both the world's most generous tax incentives to invest in start-ups, and we lead the world in equity crowd funding which opens the door for the small investor to participate, yet so few investors have even heard about SEIS which will at the very least see HMRC giving them back half of what they invest."
Seedrs, by the way, claims to the UK’s leading online platform for investing in start-ups.
© Investment & Business News 2013