PART 1Income Tax, Corporation Tax and Capital Gains Tax

CHAPTER 5Other provisions

Seed enterprise investment scheme

57SEIS: re-investment relief

1

Schedule 5BB to TCGA 1992 (seed enterprise investment scheme: re-investment) is amended as follows.

2

In paragraph 1 (SEIS re-investment relief)—

a

in sub-paragraph (2)—

i

in paragraph (a), after “the tax year 2012-13” insert “or the tax year 2013-14 (the year in question being referred to in this Schedule as “the relevant year”)”, and

ii

in paragraph (b), for “that year” substitute “the relevant year”,

b

in sub-paragraph (3)(a), for “tax year 2012-13” substitute “relevant year”, and

c

for sub-paragraph (5) substitute—

5

The relevant percentage of the available SEIS expenditure is to be set against a corresponding amount of the original gain.

5A

In sub-paragraph (5)—

  • “the available SEIS expenditure” means so much of the SEIS expenditure as—

    1. a

      is specified in the claim,

    2. b

      is unused, and

    3. c

      does not exceed so much of the original gain as is unmatched;

  • “the relevant percentage” means—

    1. a

      if the relevant year is the tax year 2012-13, 100%, and

    2. b

      if the relevant year is the tax year 2013-14, 50%.

3

In paragraph 2 (restrictions on relief under paragraph 1)—

a

in sub-paragraph (1), for “tax year 2012-13” substitute “relevant year”, and

b

in sub-paragraph (2)—

i

for “tax year 2012-13” substitute “relevant year”, and

ii

for “that tax year” substitute “that year”.

4

In paragraph 5 (removal or reduction of relief) in sub-paragraph (2) for “2012-13” substitute “in which the shares were issued”.

5

Accordingly, in section 150G of TCGA (which introduces Schedule 5BB), for “tax year 2012-13” substitute “tax years 2012-13 and 2013-14”.