VCM35130 | Venture Capital Schemes Manual: the Seed enterprise Investment Scheme: company and investor procedures: the process of investors to claim tax reliefs

An investor can make a claim on his or her Self-Assessment (SA) tax return for the tax year in which the shares were issued. See SAM121405 .

A claim does not become final until the tax return on which it is made ceases to be capable of amendment. Where for any reason relief which is claimed would, if it had been obtained, have had to be withdrawn, the individual ceases to be eligible for relief and the tax return needs to be amended accordingly.

When a claim is made on a SA tax return the required details in respect of each holding of shares should be copied from the form SEIS3 into the space reserved at the end of the form for further information. The guidance applicable form SA101 should be followed for the appropriate tax year claim.

If the shares were issued in a year for which it is too late to make or amend a Self-Assessment tax return, or if the claim is for capital gains re-investment relief, the investor must also complete the claim part of the claim form and send it to his or her tax office.

Investors who wish to obtain relief for an investment for the current year without waiting for the year to end can do so by

• requesting a change to their PAYE code number (using the claim section of form SEIS3, the SEIS3 must show the company’s Unique Investment reference)

or

• claiming a reduction in a payment on account

Guidance on the SEIS coding process is in PAYE10047

As regards the procedure where the investor wants to treat some of the shares as issued in the year previous year to the year in which they were issued see VCM35170.