Other tax relief deductions 16 - Subscriptions for shares under the Seed Enterprise Investment Scheme
If you invested in shares that were issued during the year to 5 April 2020 (or during the year to 5 April 2021 if you're carrying back relief - read Helpsheet 393 Seed Enterprise Investment Scheme - Income Tax and Capital Gains reliefs) you may be able to claim Income Tax relief under the Seed Enterprise Investment Scheme.
The amount by which your tax liability will be reduced will be the smaller of:
- the amount you subscribed (up to a maximum of £100,000) at 50%
- the amount that reduces your tax bill to zero for the year
To qualify for relief you must have received both form EIS3 Seed Enterprise Investment Scheme Certificate and claim to relief from the company you invested in, or form EIS5 Enterprise Investment Scheme from the fund manager of an approved investment fund. Helpsheet 393 Seed Enterprise Investment Scheme - Income Tax and Capital Gains reliefs explains the qualifying conditions for tax relief.
Enter the total amount of the subscription on which you're claiming relief (up to a maximum of £100,000) for the year 6 April 2020 to 5 April 2021. Companies are now able to report investment details digitally and will be given a unique investment number (UIR) with your certificate. You must provide the UIR and details of each investment including company name and amount invested in the 'additional information' field enter:
