What is the maximum amount of investment eligible for SEIS income tax relief per year?

The maximum amount of investment eligible for Seed Enterprise Investment Scheme (SEIS) income tax relief per year is £100,000. This limit allows individual investors to receive a significant tax reduction by investing in qualifying startups and early-stage companies. The SEIS is designed to encourage investment in small businesses by providing tax incentives, thus stimulating entrepreneurship and innovation.

Understanding the rationale behind the £100,000 limit is essential, as it aligns with the objectives of the SEIS program to attract greater private investment into emerging companies. By offering income tax relief on this amount, it incentivizes investors to take calculated risks in providing capital to startups, which can be crucial for their development and growth.

In contrast to this amount, the other figures listed as options either understate or exceed the actual limit set by the SEIS guidelines. Therefore, recognizing £100,000 as the maximum investment threshold is key for any investor looking to take full advantage of the SEIS tax relief benefits.