Which of the following benefits does the SEIS offer concerning income tax?

The Seed Enterprise Investment Scheme (SEIS) is designed to encourage investment in small, early-stage companies by providing tax relief to investors. One of the main features of the SEIS is that it offers income tax relief of 50% on the amount invested in eligible companies. This means that if an investor puts money into a qualifying start-up, they can offset half of that investment against their income tax bill, thus reducing the overall tax that they owe.

This relief is particularly beneficial for individuals looking to reduce their tax liabilities while simultaneously supporting new businesses. The emphasis on early-stage investment aligns with the scheme's goal of fostering innovation and growth within small enterprises.

The other responses do not accurately describe the benefits of the SEIS. For instance, reducing income tax by a flat 25% on all investments does not reflect the specific provisions of the SEIS. Offering complete exemption from income tax misrepresents the nature of the relief provided, as it does not exempt any income from tax, but rather reduces tax liabilities based on investment. Finally, the SEIS does not guarantee a fixed return on investment, as this would contradict the inherent risks associated with investing in start-ups, which can be volatile and unpredictable.

Thus, the answer highlighting the 50