Which of the following best describes SEIS incentives?

SEIS, or the Seed Enterprise Investment Scheme, is specifically designed to encourage investment in small and early-stage start-up companies in the UK. The primary incentive of the SEIS is to offer significant tax relief to investors, which can include income tax relief on the amount invested, as well as capital gains tax relief. This tax relief is aimed at mitigating the risk taken by investors when investing in new businesses, making it more attractive for them to provide the necessary funding that these enterprises need to grow and succeed.

The tax relief can significantly lower the cost of investment for individuals, which is a key element in incentivizing them to support start-ups. Additionally, SEIS also provides other benefits, such as loss relief, which further enhances the financial appeal for potential investors.

Other options do not accurately represent the core purpose of SEIS. For instance, while the scheme supports investments, it does not provide loans at low interest rates, guarantee profits on investments, or limit investor involvement in start-ups. These aspects are not aligned with the main objective of SEIS, which is to encourage investment through attractive tax incentives.