The seed enterprise investment scheme is to be made permanent.
Introduced in 2012, the SEIS invests in smaller companies than the EIS and offers higher reliefs. It was originally due to expire on 5 April 2017 but will now become a permanent part of the financial planning landscape.
In his speech, Chancellor George Osborne said: “Two years ago, I launched the seed enterprise investment scheme to help finance start-ups. It’s been a great success and I’m making it permanent.”
The Government will also explore options for all EIS and VCT reliefs to apply where individuals make investments in the form of convertible loans.
Smith & Williamson national tax partner Tina Riches says: “Removing the time limit from SEIS and making the CGT relief for reinvesting gains in SEIS shares permanent is excellent news for those involved in the economic recovery.”