Government Shows Commitment EIS and SEIS mini budget

With energy prices grabbing the headlines from The Chancellor's 'mini budget' this morning, it has perhaps flown under the radar that the Government overtly reiterated its commitment to the Enterprise Investment Scheme (EIS) and Seed EIS. 

There was previously some debate regarding the future of EIS, with a 'sunset clause' in 2025. However, Kwasi Kwarteng this morning stated that the government remains supportive of the EIS and "sees the value of extending them in the future." 

Chancellor Kwasi Kwarteng, commented;
"We want this country to be an entrepreneurial share-owning democracy. The Enterprise Investment Scheme and Venture Capital Trusts, we will extend beyond 2025. The Seed Enterprise Investment Scheme and Company Share Option Plans, we will increase the limits to make them more generous. Crucial steps on the road to making this a nation of entrepreneurs."

This specific commitment to EIS is great news for investors and entrepreneurs alike as it offers reassurance that EIS is here to stay, and remains one of the most generously tax-advantaged schemes in the world.

This morning's statement also went on to confirm that from April 2023, companies will be able to raise up to £250,000 of SEIS investment, a two-thirds increase, up from £150,000. To enable more companies to use SEIS, the gross asset limit will also 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.

This is great news for the industry, with Deepbridge's CMO, Andrew Aldridge, this morning commenting;
"The new Chancellor's overt commitment to the Enterprise Investment Scheme and Seed Enterprise Investment Scheme could well be the single most important decision he takes during his time at 11 Downing Street.  These world-class propositions are fundamental to the creation of the innovative companies of tomorrow.  Particularly within our specialist sectors of disruptive technology and life sciences, EIS and SEIS are key in ensuring the UK is globally recognised as one of the best places to start and scale business.  Being a leading EIS and SEIS fund manager, we are naturally delighted that any shred of doubt has been removed for investors and entrepreneurs."a