As part of its policy to encourage growth in the UK, today's mini budget also included changes to the Seed Enterprise Investment Scheme (SEIS), a scheme provides income tax relief to individuals who invest in early-stage companies.
Currently, companies who qualify for the relief are able to raise up to £150,000 through SEIS investments but from April 2023 this limit will be raised to £250,000. In addition, the requirements for these companies to qualify for this investment will also be amended so that their gross asset limit will be increased from £200,000 to £350,000 and their age limit from increased from 2 to 3 years. This will be a welcome change for these companies who often look to these investments to help with the problems of raising finance at such an early stage.
These changes announced today will also be welcomed by investors, as the amount on which they can claim income tax relief is to be increased from £100,000 to £200,000.
Return to Mini Budget 2022.
Follow us on LinkedIn for updates from Travers Smith Tax.