Measure
The government has announced that companies will be able to raise up to £250,000 of SEIS investment from April 2023, which is a two-thirds increase on current rules. To enable more companies to benefit from SEIS, the gross asset limit will also be increased to £350,000 and the age limit of the company from 2 to 3 years. To complement these increases the annual investor limit will be doubled to £200,000. The government has said that these changes will help over 2,000 companies a year that use the scheme to grow. Under the SEIS, investors can obtain certain income tax and capital gains tax reliefs in relation to their investments.
This will affect UK start-ups looking to raise additional finance and investors looking to invest in these companies.
The changes are due to come into force from April 2023..
This measure is a welcome boost for UK start-ups looking to raise money.