Income Tax Act 2007 section 257AB

Form and amount of SEIS relief

Section 257AB sets out how Seed Enterprise Investment Scheme (SEIS) income tax relief is calculated, including the rate of relief, the annual investment limit, and the option to carry back relief to the preceding tax year.

• An eligible individual who claims SEIS relief receives a tax reduction equal to 50% of the amount subscribed for qualifying shares, up to a maximum investment of £200,000 per tax year — giving a maximum tax reduction of £100,000.
• The relief is given as a reduction in income tax liability for the tax year in which the shares were issued, applied at Step 6 of the income tax calculation under section 23.
• An individual may elect to treat all or part of a share issue made in the current tax year as if the shares had been issued in the preceding tax year, with tax liabilities for both years adjusted accordingly.
• The annual cap on the amount that qualifies for SEIS relief is £200,000, and the SEIS rate of relief is fixed at 50%.