The Government recently published statistics indicating that the Seed Enterprise Investment Scheme (“SEIS”), which offers tax reliefs to individual investors acquiring shares in early stage small companies, has resulted in over £82,000,000 of funding for some 1,100 companies to date. Indications are that around 19 companies are raising a total of £1,300,000 under the SEIS every week. Investors can claim SEIS tax reliefs on investments totalling up to £100,000 per tax year. On investment, investors can claim 50% Income Tax relief and, if applicable, 100% (2012/13) or 50% (2013/14) exemption on capital gains from the disposal of other assets. On exit, subject to conditions, any gain on the investment can be free of Capital Gains Tax and in the event of failure of the investee company loss reliefs are available. Further information on the SEIS can be found here David Nash, Partner at Magma commented “The tax reliefs afforded by the SEIS are extremely attractive and very useful for start-ups in attracting equity investment. There are complexities with the scheme from the company’s point of view and careful implementation and ongoing advice are essential for a company to obtain and retain SEIS status for investors. Over the last year Magma has advised a large number of high growth start-ups in various sectors, such as technology, engineering, online/mobile, media, property and retail, on the SEIS and are well placed to assist start-ups looking to use the scheme”.