The Enterprise Investment Scheme (EIS) is to be extended beyond the current 2025 deadline, and limits on investments in the Seed Enterprise Investment Scheme (SEIS) are to be raised.
These key announcements for the start-up sector were made by the Chancellor today, in a critical commitment which will give confidence to entrepreneurs and investors in the UK at a time of so much economic uncertainty.
EIS and SEIS have accounted for over £27 billion of private sector investment in more than 52,000 of the country’s brightest businesses since its inception. The schemes are seen as a major factor in the UK’s unbounded entrepreneurial drive.
Director General of the EISA, Christiana Stewart-Lockhart said, “The announcement from the Chancellor this morning is excellent news for entrepreneurs.”
“The EIS is crucial to helping some of the country’s most promising start ups secure much needed investment to grow, contributing both to employment and to the country’s economic wellbeing.
“It is fantastic to see the Chancellor’s commitment to make ‘this a nation of entrepreneurs.’ His announcements today clearly outline that the Government sees entrepreneurs playing a central role in the UK’s economic recovery.
Meanwhile from April 2023, companies will be able to raise up to £250,000 of SEIS investment, a two-thirds increase.
To enable more companies to use SEIS, the gross asset limit will be increased to £350,000 and the age limit from 2 to 3 years.
To support these increases, the annual investor limit will be doubled to £200,000. These changes will help over 2,000 companies a year that use the scheme to grow.
“We are delighted to hear that the Chancellor plans to increase the limit on SEIS to £250,000 and extend the age limit on start-ups using the scheme from 2 to 3 years.
“These changes will enable more companies from across the whole of the UK to use this crucial scheme to secure investment in order to drive innovation and economic growth, further supporting the levelling up agenda.”