Explanatory Notes

Finance Act 2014

2014 CHAPTER 26

17 July 2014

Introduction

Section 54: Removing Time Limit on SEIS Relief

Summary

1.This section removes the expiry date from the Seed Enterprise Investment Scheme (SEIS) and makes it permanent.

Details of the Section

2.Subsection 2 amends Section 257A ITA which provides an end date for the SEIS by limiting relief to shares issued on or after 6 April 2012 but before 6 April 2017. The amendment removes the 6 April 2017 restriction and permanently extends the scheme.

Background Note

3.SEIS was introduced in 2012. It aims to incentivise the provision of equity capital to small early-stage unquoted companies which are carrying on or preparing to carry on qualifying trading activities. It does so by providing a range of income and capital gains tax reliefs for individual investors who subscribe for shares in companies which meet the requirements of the scheme.