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What you need to know about the new SEIS rules

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 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 limitfor 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.

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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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