Which of the following is NOT a feature of SEIS?

The correct answer is that it targets mainly established businesses. The Seed Enterprise Investment Scheme (SEIS) is specifically designed to encourage investment in new and early-stage companies, particularly start-ups. This initiative provides tax reliefs to investors, making it more attractive to invest in businesses that have high growth potential but may not yet be established or profitable.

Examining the features of SEIS, it offers income tax relief up to 50% and provides an exemption from Capital Gains Tax (CGT) on gains reinvested into SEIS qualifying companies, which incentivizes investment in new ventures. The focus on start-ups is crucial to the scheme's intent, which is to nurture innovation and entrepreneurship in the UK economy.

In contrast, established businesses typically have greater access to funding and resources, making them less reliant on the kind of seed funding that SEIS targets. Thus, the notion that SEIS targets established businesses is incorrect, confirming that option B is the statement that does not describe a feature of SEIS.