Net return: You invested £25,000 but immediately received £12,500 in income tax relief.Your shares are now worth £125,000. Combined with the £12,500 tax relief you already received, your total benefit is £137,500. Minus your £25,000 investment = £112,500 profit.
ROI: Your exit proceeds of £125,000 divided by your actual cash invested of £12,500 = 10.00x return, or 900.0% ROI.
Tax advantage: Without SEIS, you would pay £28,000 in capital gains tax on your £100,000 gain, reducing your profit significantly.
Calculation: Annual profit of £500,000 × 60% payout ratio × your 2.50% ownership = £7,500 annual dividend.
Payback period: Your actual cash invested of £12,500 ÷ £7,500 annual dividend = 1.7 years to fully recover your investment through dividends alone.
Important disclaimer
The calculations and scenarios presented in this tool are examples for illustrative purposes only and should not be considered as financial advice or guarantees of future performance. Investment returns, tax reliefs, and dividend payments are subject to various risks and uncertainties. We strongly recommend that you speak to qualified financial and tax advisors to discuss your individual circumstances, investment objectives, and risk tolerance before making any investment decisions.