SEIS Investments
Discussion
I posted on this subject some time ago, more for general views / advice, however I'm thinking of letting the tax tail wag the investment dog again. Basically I'm in a position where I'm going to have to hand over a chunk of cash to the taxman if I do nothing, and a SEIS (or potentially an EIS) could divert this elsewhere.
If I've got my sums right, then bottom line is that I'd be £7k worse off if the investments all failed, and that's a risk I'm pretty comfortable with.
Has anyone here invested into a SEIS fund of any description?
If I've got my sums right, then bottom line is that I'd be £7k worse off if the investments all failed, and that's a risk I'm pretty comfortable with.
Has anyone here invested into a SEIS fund of any description?
Not a fund but businesses, both EIS and SEIS qualifying. In this situation I think it's important to be hands on: understand the idea (more so for SEIS), look those in charge in the eye and be comfortable that it is or will be run properly. By that I mean at the very least having advanced assurance (that the business qualifies) from HMRC, remaining within the qualifying terms of EIS (for the duration) as well as good standards of governance, let alone being smart and having staying power!
SEIS & EIS businesses work for investors looking to get tax relief into the bargain. The benefits to a UK taxpayer are such that very little is at risk, even if the business fails and, as the starting position is one of being possibly 50% "up" (i.e. half the amount that would have gone to HMRC had you not invested), you have quite a bit of margin for the business to become profitable, if it isn't already.
After getting involved in my first EIS business (back in 1998 as an employee & investor) I was convinced of the value of this scheme and since then learned all I could, running another SEIS business along the way and working with another who has set up multiples of them (film-related but our businesses share the same, heavily SEIS/EIS-experienced accountant). In all cases the benefits have been taken by investors successfully.
I now have a business model with HMRC's full, written approval, to set up SEIS & EIS qualifying companies for investors which operate within a framework that allows them to own so-called enjoyable assets such as cars, boats, bikes and other collectables. Thanks to the reliefs available, purchase and maintenance of these assets cost the company (i.e. the investors) up to 50% less.
I recommend exploring SEIS/EIS and seeing if it's right for you.
SEIS & EIS businesses work for investors looking to get tax relief into the bargain. The benefits to a UK taxpayer are such that very little is at risk, even if the business fails and, as the starting position is one of being possibly 50% "up" (i.e. half the amount that would have gone to HMRC had you not invested), you have quite a bit of margin for the business to become profitable, if it isn't already.
After getting involved in my first EIS business (back in 1998 as an employee & investor) I was convinced of the value of this scheme and since then learned all I could, running another SEIS business along the way and working with another who has set up multiples of them (film-related but our businesses share the same, heavily SEIS/EIS-experienced accountant). In all cases the benefits have been taken by investors successfully.
I now have a business model with HMRC's full, written approval, to set up SEIS & EIS qualifying companies for investors which operate within a framework that allows them to own so-called enjoyable assets such as cars, boats, bikes and other collectables. Thanks to the reliefs available, purchase and maintenance of these assets cost the company (i.e. the investors) up to 50% less.
I recommend exploring SEIS/EIS and seeing if it's right for you.
Edited by galley skulker on Wednesday 4th May 15:14
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