I have an opportunity to make an SEIS investment in a startup that I have a lot of belief in. one of the attractions of SEIS investment is the 50% tax relief you get on your investment and the fact it is not subject to capital gains tax. For this particular investment I need to get a portion of it from a good friend, so for arguments sake let's say he's putting in 50% of the investment. I don't have any time to get professional advice on this hence my post here.
Assuming the business does well and we make a profit hand ignoring the tax relief element, if we were to make a good profit on this, can I simply return 50% of the investment and its related profit to my mate or would that be subject to taxation?
