Topic

Loss relief

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VCT, EIS & SEIS · Explainer

· 6 min read

SEIS loss relief: what you get back if the company fails

If an SEIS company fails, you can set the loss, after deducting the 50% income tax relief you kept, against your income for that tax year or the one before. On £10,000, that leaves a net loss of £3,000 for a higher-rate taxpayer and £2,750 for an additional-rate taxpayer.

VCT, EIS & SEIS · Analysis

· 4 min read

What SEIS and EIS reliefs do to the maths of startup investing

On a £10,000 stake, SEIS relief cuts the money at risk to £5,000 and EIS relief to £7,000 before loss relief. If the company fails, an additional-rate taxpayer loses £2,750 net under SEIS and £3,850 under EIS: the reliefs change the size of the bet, not the odds.