An 'astonishing' new scheme for start-ups

There weren’t many winners from George Osborne’s autumn statement. Yet hidden among the bad news is an 'astonishing' new tax break for investors - the 'seed enterprise investment scheme'. James McKeigue explains.

There weren't many winners from George Osborne's autumn statement. Yet hidden among the bad news is a juicy new tax break for investors. Accountants at Blick Rothenberg call it "astonishing".

From April 2012 the seed enterprise investment scheme (SEIS) will allow individuals who invest up to £100,000 per year in a new start-up business (up to a maximum cumulative investment in one firm of £150,000) to claim back income-tax relief equal to 50% of the amount invested. Moreover, as accountants at Deloitte note, you're eligible for the 50% tax break regardless of the marginal rate at which you pay income tax.

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James McKeigue

James graduated from Keele University with a BA (Hons) in English literature and history, and has a certificate in journalism from the NCTJ. James has worked as a freelance journalist in various Latin American countries.He also had a spell at ITV, as welll as wring for Television Business International and covering the European equity markets for the Forbes.com London bureau. James has travelled extensively in emerging markets, reporting for international energy magazines such as Oil and Gas Investor, and institutional publications such as the Commonwealth Business Environment Report. He is currently the managing editor of LatAm INVESTOR, the UK's only Latin American finance magazine.