How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4357
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

Hi looking to invest in a company in the Uk, two employees,

Customer Question

Hi looking to invest in a company in the Uk, two employees, has been operating for just over a year, has about 30£k in assets, it sales software to uk companies, the product itself is made by another company in Spain, there are no share crossholdings between the two although they have the same controlling shareholder.
My question is would i qualify for tax relief under SEIS if i invest in this company?
Thank you
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

SEIS tax relief applies to individuals who purchase new qualifying shares in a company which meets SEIS requirements. The rules are complex, have a look at HMRC information sheet 'Seed Enterprise Investment Scheme - Background. It would appear that this company does qualify under SEIS. However, the key words are 'purchase new qualifying shares' so your investment would have to be by means of a share issue, purchasing shares from an existing shareholder would not suffice.

I do hope I have been able to help with your question.
Customer: replied 3 years ago.

Thanks for your answer, yes this would be new shares, i have looked at the site, it describes excluded biz activities such as providing services to another person's trade which consists of excluded activities, would selling software manufactured by a different company in spain controlled by the same shareholder qualify as such? The company is not controlled by another company but it has the same controlling shareholder, would it qualify? Beat regards
Expert:  bigduckontax replied 3 years ago.
I did specifically look at this digging deeper into the SEIS detail and although a huge raft of company activity does not qualify your company's trading does so comply. I could not see that the trading method proposed disqualifies the company from DEIS.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.