VCM40120 - Seed Enterprise Investment Scheme (SEIS): SEIS disposal relief: part-disposal: example

• December 2012 an investor subscribes £100,000 for 100,000 shares in a SEIS company. Income Tax relief of £50,000 is given in 2012-13.
• January 2014 the investor sells 25,000 shares for £10,000. Income Tax relief of £5,000 is withdrawn, (£10,000 x 50%), see VCM36020. Income Tax relief of £7,500 attributable to the shares sold is not withdrawn. The allowable loss is calculated:

Disposal proceeds £10,000

Less cost £25,000

reduced by income
tax relief £7,500 £17,500

Allowable loss (£7,500)

*This is the SEIS Income Tax relief not withdrawn which remains attributable to the shares sold.