50% (or more) Tax Savings Possible

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From April 2012 the seed enterprise investment scheme (SEIS) will allow individuals who invest up to £100,000 in a new start up business – to claim back 50% tax relief of the amount invested (regardless of the rate at which you pay tax).

In addition investors can avoid paying capital gains tax on any asset sold in financial year 2012/13 so long as they re-invest proceeds in a SEIS in the same year.

However there are some restrictions that apply so check these out, plus as I am sure you are aware start up businesses are inherently more risky.

You will no doubt be aware of the adage “never let the tax tail wag the investment dog”. Do ensure you carry out due diligence on any investment of this sort.

If you have any queries on this article or would like to discuss any financial or tax planning advise  please one of our Financial Planning Consultants, at Pareto Lawrence we offer both Financial and tax planning advice to corporate and private clients.

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