Income Tax Act 2007 section 257DL

The amount raised through the SEIS

Section 257DL sets a £250,000 cap on the total amount a company can raise through SEIS investments and other de minimis state aid over a rolling three-year period, and provides a mechanism for apportioning relief where that cap would otherwise be exceeded.

• The total of all SEIS investments in the company (current, same-day, and those made in the preceding three years), plus any other de minimis state aid received over the same period, must not exceed £250,000.
• An SEIS investment is made on the day the shares are issued, and the amount of the investment equals the amount subscribed for those shares; a compliance statement must also be provided at some point.
• If the £250,000 cap is breached solely because of current-day investments (i.e. historic investments and other aid alone do not exceed the limit), the current-day share issue is split into a qualifying portion and a non-qualifying portion.
• The qualifying proportion is calculated as (£250,000 minus prior investments and other aid) divided by the total of all same-day SEIS investments, and SEIS relief applies only to that qualifying proportion of the shares.

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