How much income tax relief can investors receive under SEIS?

Investors can receive a 50% income tax relief on investments made under the Seed Enterprise Investment Scheme (SEIS). This scheme was established to encourage investment in small, early-stage companies by providing tax incentives to investors. A key feature of SEIS is that it allows investors to reduce their income tax liability by 50% of the amount invested in qualifying startups, up to a certain limit.

For example, if an individual invests £10,000 in a qualifying company under SEIS, they can claim £5,000 as a tax relief, effectively lowering their income tax bill. This scheme is particularly beneficial to startups, as it not only provides direct monetary support through investments but also mitigates the financial risk for investors.

Other choices indicate higher percentages of relief that do not align with the established parameters of the SEIS, which is why they do not reflect the actual relief available. Understanding this 50% relief is crucial for investors considering opportunities under the SEIS framework, as it creates a significant incentive to support new and developing ventures in their early stages.