SEIS: £25,000 investment generates £12,500 tax refund

Mr A had agreed to invest in a small electronics company. This involved him investing £25,000 for 30% share capital, together with a loan facility of £50,000 to enable the company to purchase stock.

Mr A discussed this investment with Paul Taylor from taylorcocks, and was advised of the potential tax benefits that were available under SEIS. Paul reviewed the way in which Mr A was proposing to make the investments and suggested that this should be amended slightly so that the investment qualified for relief under the SEIS. 

This advice and the review of the structure of the investment will enable Mr A to obtain a £12,500 income tax deduction.

Had Mr A not discussed this with Paul then the way in which the investment was originally structured would not have met the strict and detailed conditions of the SEIS and he would have lost the ability to reduce his personal tax bill by £12,500.

If you would like to discuss this case study and the potential benefits that SEIS offers, please contact a member of the taylorcocks team.