Mini-budget hikes SEIS thresholds - Boodle Hatfield

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23 Sep 2022

Mini-budget hikes SEIS thresholds

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Today's mini-budget certainly contained a few headline grabbing items. One less flagged measure, however, is the loosening of the rules relating to the Seed Enterprise Investment Scheme (SEIS).

SEIS is already quite a generous scheme designed to encourage investment in new businesses. In short, qualifying investors get various tax reliefs including income tax relief of 50% on their investment, capital gains tax exemptions on disposal and loss relief. 

Companies can currently only receive a maximum of £150,000 through SEIS investments - this is being increased to £250,000 from next April.

Companies can also currently only have gross assets of up to £200,000 when the SEIS shares are issued - this is being increased to £350,000.

SEIS investors can currently only invest £100,000 in a single tax year - this is being increased to £200,000.

The full text of today's plan can be found here:

Seed Enterprise Investment Scheme (SEIS) – From April 2023, companies will be able to raise up to £250,000 of SEIS investment, a two-thirds increase. To enable more companies to use SEIS, the gross asset limit will be increased to £350,000 and the age limit from 2 to 3 years. To support these increases, the annual investor limit will be doubled to £200,000. These changes will help over 2,000 companies a year that use the scheme to grow.

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