Wealthy investors flock to start-ups for tax breaks amid looming capital gains tax raid

Wealthy investors are increasingly utilizing Seed Enterprise Investment Schemes (SEISs) to reduce capital gains tax burdens as potential CGT reforms loom.

Investment in SEISs surged 250% as investors seek substantial tax advantages including 50% income tax relief and CGT exemptions on gains.

Nicholas Hyett of Wealth Club highlights the trend of affluent individuals leveraging the SEIS for upfront tax relief while safeguarding future gains.

Despite the attractive tax benefits, investors must be cautious as approximately half of SEIS companies fail within five years, presenting significant risks.

Read at Business Matters