The North of England is to benefit from the launch of the Seed Enterprise Investment Scheme, which was announced by the government last year. The chancellor George Osborne made the announcement in his autumn statement to encourage entrepreneurs to invest in small business. Brooks Newmark, government whip launched the scheme who believes it is a “fantastic investment opportunity”.
The scheme presents an opportunity for investors to receive 50 percent tax relief on any investment made in a company up to £100,000 in a tax year, or an investment of £150,000 spread over two years or more. In addition to the 50 percent tax relief, investors pay zero percent Capital Gains Tax when exiting the scheme. A business is required to be a start-up in the UK, with less than 25 employees and no more than £200,000 of assets.
The Peel Policy Forum hosted the event at the St James’s Club in Manchester recently. The director of business for the Peel Policy Forum, Deborah Dunleavy said:
“We are incredibly excited at this announcement of the new scheme and the obvious investment opportunities it could bring to the region, and the subsequent boost to growth we hope this scheme will instigate.”
A small business accountancy will have details of when shares are eligible for the tax reliefs and up to date legislation. The Small Companies Enterprise Centre in HMRC will deal with the Seed Enterprise Investment Scheme and will decide whether a company or a share issue qualifies under the scheme.