SolvedVCM40110 | Seed Enterprise Investment Scheme (SEIS): SEIS disposal relief: losses: example
From HM Revenue & Customs · Venture Capital Schemes Manual
December 2012 an investor subscribes £100,000 for 50,000 shares in a SEIS company. Income Tax relief of £50,000 is given in 2012-13 applying the SEIS rate 50%.
January 2014 the investor sells all 50,000 shares for £60,000. Income Tax relief of £30,000 in respect of the £60,000 value received by the investor is withdrawn (£60,000 x 50%), see VCM36020. Income Tax relief of £20,000 is not withdrawn and remains attributable to the shares sold. The allowable loss is calculated as below.
| Description | Amount | Total |
|---|---|---|
| Disposal proceeds | - | £ 60,000 |
| Less cost | £100,000 | - |
| Reduced by Income Tax relief* | £ 20,000 | £ 80,000 |
| Allowable loss | - | £(20,000) |
*This is the SEIS Income Tax relief not withdrawn which remains attributable to the shares sold.