SEIS loss relief if company is still trading?

[montecristo]

I invested in an SEIS company two years ago. It's done negligible trading since. Now the company is offering to buy the shares back at 70% of what I paid.

If I sell, at a loss, can I claims loss relief if the company continues trading, or does the company need to be closed down for me to be able to claim?

[JulianPH]

montecristo said:

I invested in an SEIS company two years ago. It's done negligible trading since. Now the company is offering to buy the shares back at 70% of what I paid.

If I sell, at a loss, can I claims loss relief if the company continues trading, or does the company need to be closed down for me to be able to claim?

No, as you wouldn't have sold at a loss in any event.

Let's say you invested £100k. If you take the 30% hit on that you would still have made a £20k profit due to the SEIS tax relief of £50k.

Other important things:

1) You need to hold the shares for 3 years, otherwise there will be a claw back on the SEIS tax relief.

2) Yes, the company does have to be wound up for you to be eligible for SEIS loss relief.

I hope that is helpful.

[montecristo]

Thank you.