The Budget announces a limited extension of the capital gains tax holiday for investments into the seed enterprise investment scheme (SEIS). This is set out in paragraph 1.131 of the Budget document. This means that investors making gains in 2013-14 will receive a 50% CGT relief when they re-invest in 2013-14 or 2014-15 (subject to an election to have the shares treated as though acquired in the preceding tax year). As you are hopefully aware, any investors with gains from 2012-13 can still reinvest those gains into SEIS qualifying companies in what is left of this tax year orin 2013-14 (subject to an election to have the shares treated as though acquired in the preceding tax year) and benefit from the complete CGT exemption.
The Budget also announces a minor change to the SEIS legislation (described in paragraph 2.43 of the Budget document), to ensure that the companies established by formation agents will not inadvertently be disqualified from the scheme. That change is being legislated for in this Finance Bill and will take effect in respect of investments made on or after 6 April 2013. The Bill will be published on 28th March.
The full document and more information is available online at http://www.hm-treasury.gov.uk/budget2013.htm.
