SEIS reinvestment relief
In this lesson, you'll learn how SEIS reinvestment relief works and when you can use it to reduce your capital gains tax liability.
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In this lesson
- 0:00 SEIS reinvestment relief overview
- 0:08 How SEIS relief works with chargeable assets
- 0:33 Calculating exemption and chargeable gain
- 0:50 Maximum exemption calculation explained
- 1:13 Clawback rules within three years
- 1:54 Arm's length versus non-arm's length transactions
About this lesson
This relief applies when you dispose of any chargeable asset and reinvest the proceeds in qualifying SEIS shares within the same tax year — unlike EIS relief, which gives you a four-year window. You'll discover how the exemption is calculated (up to 50% of the lower of your original asset gain or the cost of new SEIS shares), and crucially, what happens if you sell those SEIS shares within three years, including how gains and income tax relief are clawed back depending on whether the sale is at arm's length. This is essential knowledge for the Taxation papers, where reinvestment reliefs are a key topic in managing chargeable gains efficiently.
Duration: 3m
Transcript
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