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The Seed Enterprise Investment Scheme (SEIS) is designed to help small, early-stage companies to raise equity finance by offering tax reliefs to investors who purchase new shares in a company within the scheme and who have no more than a 30% stake in those companies. Relief is available in respect of realised gains which are reinvested in SEIS shares. Relief from capital gains tax is available for half of the amount re-invested (subject to a £100,000 investment limit).

Example:
Toby realises gains of £100,000 which he re-invests in shares in a SEIS scheme.
Toby is an additional rate taxpayer and has utilised his capital gains tax annual exempt amount elsewhere.

He receives capital gains tax relief on 50% of the amount reinvested (£50,000), on which he saves capital gains tax of £14,000 (£50,000 @ 28%).
He also receives income tax relief of 50% on his investment of £100,000, saving a further £50,000 in tax.