Seed EIS
| Option | Description |
|---|---|
| Name of company / scheme |
The name entered here will appear on the Reliefs data schedule and at Any other information, box 19 on page TR 7 of the Tax Return (SA100). This box must be completed. You cannot save any other changes that you have made to the form without doing so. |
| Amount invested in the 20xx-xx tax year | Enter the total amount invested. |
| Amount of 20xx-xx investment on which relief claimed | Enter that part of Amount invested in the 20xx-xx tax year on which relief is claimed for the tax year. |
| Amount invested in 20xx-xx claimed as relief in 20xx-xx [a] | Enter amount invested in the following tax year and claimed for this tax year. |
| Amount invested in 20xx-xx claimed as relief in 20xx-xx [b] | Enter amount invested in this tax year but claimed for the previous tax year. |
| Total amount on which relief claimed for 20xx-xx | Calculated as the sum of Amount of 20xx-xx investment on which relief claimed and Amount invested in 20xx-xx claimed as relief in 20xx-xx [a], less Amount invested in 20xx-xx claimed as relief in 20xx-xx [b]. |
| Date of issue of shares | Enter the date on which the shares were issued. |
| Number of shares | Enter the number of shares. |
|
HMRC office authorising issue of certificate HMRC reference on certificate issued |
These details will appear on the Reliefs schedule and at Any other information on the Tax Return (SA100). |
Income tax relief under the Seed Enterprise Investment Scheme
Investments in Seed EIS shares may qualify for income tax relief. A claim for income tax relief can only be claimed where the form SEIS3 has been received.
The tax relief is included in the tax calculation as the lower of 50% of the amount invested or the amount that reduces the tax liability to zero. The tax relief will not create a repayment of tax.
Capital gains tax reinvestment relief
Capital gains tax reinvestment relief can be claimed against gains on non-Seed EIS assets to the value of the amount invested in Seed EIS shares on which income tax relief is claimed.
The amount of relief claimed cannot exceed the amount on which Seed EIS income tax relief is claimed, but can be reduced to ensure the capital gains tax exempt amount is not lost.
Example:
A capital gain of £100,000 arises in the year to 5 April 2023. Seed EIS investments are made totalling £110,000 and income tax relief is claimed on £100,000.
A claim can be made for reinvestment relief to a maximum of £100,000. However, the claim can be reduced to £87,700 to leave the balance of the capital gain to be covered by the capital gains tax annual exempt amount (£100,000 minus £12,300 = £87,700).
- Complete the SEIS3 certificate received from each company invested in and save a copy of the completed approved form in PDF format.
- In Personal Tax, choose Capital gain > Add new Disposal and enter the details of the asset giving rise to a capital gain.
- Make sure the correct gain is displayed in Main Details > Net gain or loss.
- Select the Reliefs & other information tab.
- Tick Claims or elections are being made.
- In Type of claim or relief, select Other reliefs (enter details below) and in Amount enter the amount of Seed EIS reinvestment relief to be claimed against this disposal.
- Select Supporting information and enter details of the claim and click OK.
- Select Capital gains summary > Loss details and summaries and verify that the amounts are correct and click OK.
- When all other data entry sections have been completed, open Current working figures and make a copy of the tax return.
- In the Forms pane select Capital gains summary > page CG 2 > box 40 and enter the amount of reinvestment relief claimed.
- In the PDF Attachments pane, select the Capital Gains attachment and review the details including the text added in Supporting information.
- Click Add attachment and add a copy of each approved SEIS3 certificate to the return. It will then be included when the finalised return is submitted online to HMRC.
- Click Save.
- Proceed with the finalisation of the return for approval by your client.
The value in box 40 is for information only and will not affect the capital gains tax liability as the amount of reinvestment will be reflected in the gain included in boxes 6, 17, 26 and/or 34.
How do I get here?
Reliefs > Investment tax reliefs