The Budget also included an announcement of the extension of capital gains tax (CGT) relief, where the gain is reinvested in new shares issued under the Seed Enterprise Investment Scheme (SEIS). This scheme started on 6 April 2012 and is due to run to 5 April 2017, but the CGT relief was due to apply only for investments made in 2012/13.
The legislation makes it clear that the CGT relief is to be extended for one year, for investments made in 2013/14. Also the CGT relief for investments made in 2013/14 will be given at 50%, while investments made in 2012/13 are given CGT relief at 100% of the gain reinvested.
In addition, income tax relief at a rate of 50% of the amount invested is available for SEIS shares subject to a maximum investment of £100,000 per year (in all SEIS companies) and the shares are subject to a Capital Gains Tax exemption where the SEIS shares are sold after 3 years or more of ownership.