An ‘astonishing’ new scheme for start-ups
December 13th, 2011There weren’t many winners from George Osborne’s autumn statement. Yet hidden among the bad news is a juicy new tax break for investors. Accountants at Blick Rothenberg call it “astonishing”.
From April 2012 the seed enterprise investment scheme (SEIS) will allow individuals who invest up to £100,000 per year in a new start-up business (up to a maximum cumulative investment in one firm of £150,000) to claim back income-tax relief equal to 50% of the amount invested. Moreover, as accountants at Deloitte note, you’re eligible for the 50% tax break regardless of the marginal rate at which you pay income tax.
Another eye-catching part of the new scheme is its ‘capital gains tax holiday’. Investors can avoid paying capital gains tax (CGT) on any asset sold during the financial year 2012-2013 as long as they reinvest the proceeds in a SEIS eligible start-up in the same year.
If this sounds vaguely familiar, that’s because it is. The scheme will run alongside existing enterprise investments chemes and venture capital trusts (VCTs). The fundamental difference, other than the tax breaks, is that the SEIS focuses on investing in start-ups. Also, whereas wit
Tags: Astonishing New, New
money without helping the economy. But however you feel about Occupy Wall Street, there’s no denying that Bank Transfer Day was a big success: according to the Credit Union National Association, $80 million in new accounts from 40,000 new members were opened on November 5th alone. And the lead up to the day was no less dramatic, with $4 billion in new accounts appearing in credit unions across the nation.Those are the kinds of numbers that turn the heads of big banks. T