In this week’s Q&A, Rickie Lowery, adviser at Croner-i VIP Tax Team, explains whether SEIS relief can be adjusted and capital losses utilised when company stops trading
My client has invested £90,000 into shares qualifying for seed enterprise investment scheme (SEIS) relief and has claimed the full relief of £45,000 against their income for the 2024-25 tax year.
The company has subsequently advised the client that the trade is unlikely to be viable and therefore two years after the shares were issued the company will cease to trade. After that point, the company intends to either continue in an investment capacity by using loans to acquire properties or to commence winding up, with the client expecting to receive a minimal amount for their shares.
Q.How will the SEIS relief be adjusted and how can any capital losses be utilised?
