The Chancellor, Kwasi Kwarteng, today (23 September 2022) announced a set of sweeping changes to SEIS and strongly hinted at pushing out the EIS sunset clause, which currently means the EIS scheme is withdrawn from 6 April 2025 if no action is taken.
The changes, which are copy and paste from the The Growth Plan, are as follows:
First, lets look at the changes regarding SEIS - very firm commitments have been announced:
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.
The news on EIS remains less firm, but seems positive and surely indicates that EIS won’t be allowed to lapse:
The government remains supportive of the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) and sees the value of extending them in the future.
A few obvious questions spring to mind as a result of these changes:
This article will be updated as more details on the changes are published.
← Back to all of the articles
You can start a funding round in minutes with a free FounderCatalyst account, experiment with our service and see how easy it would be to save time, money, and emotional resources by using FounderCatalyst when raising your next funding round.
You can see a sample of the paperwork we'd generate, invite colleagues to act as investors, and truly experiment with how easy we make it. Then cancel the experiment round when you're ready to start a real one!