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.