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Autumn Statement: Increased SEIS limits confirmed

Joseph Zipfel, Chief Investment Officer With a background in investment banking and a Master's from ESCP Europe, Joseph manages SFC Capital's investments, investor relations, and portfolio company fundraising strategies since 2014.
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The Treasury has confirmed the Seed Enterprise Investment Scheme (SEIS) extensions will go ahead as planned in April 2023

There was a lot of anticipation in the SEIS and EIS industry ahead of the Chancellor’s Autumn Statement last week. Whilst it was obviously a very difficult Autumn Statement in many ways, we were pleased that the more detailed documentation, published by the Treasury, confirmed the Seed Enterprise Investment Scheme (SEIS) extensions would go ahead as planned in April 2023.

Given the recent instability, this is a significant commitment. The Chancellor specifically mentioned his desire to “turn Britain into the world’s next Silicon Valley” and to make innovation and entrepreneurship one of his top three priorities for growth. 

We certainly share that vision at SFC Capital. Our mission is to allow private investors to take part in this innovation wave, while benefiting from this highly generous tax scheme which remains unique in the world.

As a reminder, the extensions to SEIS that were previously announced in September are the following. 

From 6th April 2023:

  • The annual investor limit will increase from £100,000 to £200,000 
  • The company limit will increase from £150,000 to £250,000
  • The gross asset limit will be increased from £200,000 to £350,000
  • The age limit for companies will be increased from 2 to 3 years

These changes will make SEIS more “mainstream”: investors will be able to invest more, while companies will tend to be more mature and raise larger funding rounds. All of this will improve the risk profile and attractiveness of SEIS and should considerably increase the amount invested under the scheme every year.

Despite the current tough economic climate, it is clear that the UK has a massive opportunity to become a world-leading innovation hub. The outlook has never been brighter for starting and investing in emerging technology companies and we very much look forward to keeping backing the innovations of tomorrow.

Capital at risk. For professional investors only.

Tax benefits are subject to individual circumstances. Subject to changes.

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SFC Capital Ltd (SFC) is an appointed representative of SFC Capital Partners Ltd which is authorised and regulated by the Financial Conduct Authority (‘FCA’) in the United Kingdom (FRN 736284). This website is intended for professional investors only; any reproduction of this information, in whole, or part, is prohibited. The content is for information purposes only and should not be used or considered as an offer or solicitation to purchase or sell any securities.

Investment in early-stage companies involves risks such as illiquidity, lack of dividends, loss of investment and dilution. Investment in SEIS/EIS eligible companies should be considered as part of a diversified portfolio. The availability of tax relief depends on individual circumstances and may change in the future. The availability of tax relief depends on the company invested in maintaining its SEIS/EIS qualifying status. There is no assurance that the investment objectives of any investment opportunity will be achieved or that the strategies and methods described herein will be successful. The investment products cited herein may place capital at risk and therefore investors may not get back the full amount invested. Past performance is not necessarily a guide to future performance and the value of an investment may go down as well as up. Investors may not get back the full amount invested. Companies’ pitches for investment are not offers to the public and investments can only be made by members of SFC Capital. SFC Capital takes no responsibility for this information or for any recommendations or opinions made by the companies. Neither SFC Capital nor any of its employees provide any financial or tax advice in relation to the investments and investors are recommended to seek independent financial and tax advice before committing. This website is not directed at or intended for publication or distribution to any person (natural or legal) in any jurisdiction where doing so would result in contravention of any applicable laws or regulations. No warranties or representations of any kind are expressed or implied herein. This material is confidential and is the property of SFC Capital.

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