As part of the ongoing move to cut taxes and simplify the administration of some of the more complex reliefs, the government has announced some amendments to the Seed Enterprise Investment Scheme (SEIS) in Budget 2013.

The Chancellor confirmed that the government will extend the CGT holiday under 'the Seed Enterprise Investment Scheme, [which] offers generous incentives to investors in start-up'.

As a result, share loss relief applying to Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS) and overlap relief will be exempt from the cap on unlimited income tax reliefs at the greater of £50,000 or 25% of an individual's income, as announced at Budget 2012.

The government will amend the qualifying conditions attached to the SEIS so that an investment on or after 6 April 2013 into companies established by corporate formation agents can qualify for the scheme.

There will also be new legislation in Finance Bill 2013 to provide a 50% relief against CGT chargeable on gains realised in 2013-14 which are reinvested in the SEIS in 2013-14 or 2014-15.

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