The CGT holiday for investors re-investing gains in SEIS shares has been extended for another year. Whilst this is good news it is disappointing that the re-investment relief is only available for half the gain re-invested.
SEIS relief has proved an extremely popular and invaluable means of raising vital seed capital for small start up companies in its first year because the generous tax reliefs have served to de-risk the investment.
HMRC have also thankfully clarified that SEIS companies will not be disqualified for failing the independence test simply because they are established by a company formation agent. This is welcome news because this provision served no purpose and was an administrative hassle.