Taxation of Chargeable Gains Act 1992 Schedule 5BB paragraph 1

SEIS re-investment relief

Section 5BB paragraph 1 sets out the conditions under which an individual can claim Seed Enterprise Investment Scheme (SEIS) re-investment relief to reduce or eliminate a chargeable gain, and defines how the amount of relief is calculated.

• An individual who disposes of an asset in 2012-13 or a later tax year and realises a chargeable gain may claim SEIS re-investment relief if they also invest in qualifying SEIS shares in the same year and claim SEIS income tax relief on those shares.
• For the tax year 2012-13, 100% of the qualifying SEIS expenditure can be set against the gain; for 2013-14 onwards, only 50% of the qualifying SEIS expenditure can be set against the gain.
• The amount of the gain covered by the relief is treated as not being a chargeable gain, effectively exempting that portion from capital gains tax.
• Relief is restricted so that the same SEIS expenditure cannot be used more than once, and the same part of a gain cannot be sheltered by more than one claim for SEIS re-investment relief or EIS deferral relief.

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