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What you need to know about the new SEIS rules

What you need to know about the new SEIS rules News

The Government is introducing changes to the Seed Enterprise Investment Scheme (SEIS) from April 2023 – what does this mean for companies and investors?

Although it didn't make the headlines following the Chancellor’s mini-budget on Friday, many of you will have noticed the announcement of a major boost to the Seed Enterprise Investment Scheme (SEIS).

We were delighted with this announcement as we have been lobbying for two years for improvements to SEIS, and even launched a petition this year which received more than 400 signatures from entrepreneurs and investors.

Our CEO Stephen Page commented on these positive changes in SiftedThis Is Money, and UKTN among other.

From April 2023, the following changes will come into force:

  • The company limit will be increased 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 
  • Last but not least, the annual investor limit will increase from £100,000 to £200,000

In a nutshell, this means that companies will now be able to raise larger pre-seed rounds over a longer period of time, giving them better chances of success. This is fantastic news for investors as well who can now invest more under SEIS and up to £200,000 per year.

We believe that these changes are going to make SEIS become more mainstream as the risk profile of the underlying investments is reduced and the amount that investors can deploy is larger.

As the leading SEIS fund, we are extremely excited about the opportunities that these changes will bring. We believe that over time, these new thresholds will allow us to double our activity, both in terms of amount invested and number of companies that we back every year.

In the coming months, we will open the tranche of our SEIS fund which will be invested in companies in the 23/24 tax year under these new rules.

In the meantime, you can still invest in the current tranches of our SEIS fund and of our EIS fund which will both be deployed in companies before the end of the current tax year.

Capital at risk. For professional investors only.

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

Joseph Zipfel Joseph Zipfel
Chief Investment Officer