SEIS idea - is this dodgy?
Discussion
Not necessarily dodgy but there is a lot of anti-avoidance around SEIS and its bigger brother, EIS. HMRC enforce the rules rigidly and it is very easy to lose the relief.
You really need professional advice on this.
But - increase your dividends to use the income tax relief? Yes
Buying the shares back - should be possible for the company to buy back the shares (if it has reserves). This would be a dividend but if you receive no more than you paid, then should be no income tax. However, you cannot have any "arrangements" in place to allow you to exit when you make the investment, so care is needed.
Reciprocal investment - HMRC are very alert to this and it is specifically given as an example in their manuals where SEIS/EIS would be denied.
Overall, what you are proposing may be possible but would need to be very carefully monitored, especially as HMRC change the rules all the time
You really need professional advice on this.
But - increase your dividends to use the income tax relief? Yes
Buying the shares back - should be possible for the company to buy back the shares (if it has reserves). This would be a dividend but if you receive no more than you paid, then should be no income tax. However, you cannot have any "arrangements" in place to allow you to exit when you make the investment, so care is needed.
Reciprocal investment - HMRC are very alert to this and it is specifically given as an example in their manuals where SEIS/EIS would be denied.
Overall, what you are proposing may be possible but would need to be very carefully monitored, especially as HMRC change the rules all the time
Gassing Station | Finance | Top of Page | What's New | My Stuff