Encouraging investment in unlisted companies
The Chancellor has given his support to the tax-advantaged Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) and said he sees the value of extending them in the future.
The vision is for the UK to be an entrepreneurial, share-owning democracy.
In relation to the Seed Enterprise Investment Scheme (SEIS), the Treasury have confirmed that the following changes will apply from April 2023:
- Companies will now be able to raise up to £250,000 from SEIS investments. This is an increase from the current limit of £150,000.
- The scope for the companies able to use the scheme will widen. This is because currently the scheme was only open to companies with a gross asset value of £200,000, from April 2023 this limit has been extended to £350,000. Also, the relief will be available to companies who have been trading no more than three years, this time limit is currently set at two years.
- Investors have the opportunity from the 2023/24 tax year onwards to obtain more SEIS relief, as the annual investor limit has doubled from £100,000 to £200,000
For more information on this, please contact Joe Wilson on 023 8046 1237.