Mini Budget: Chancellor Backing EIS and SEIS is “Massive Vote of Confidence” in Flagship Growth Business Investment Schemes
by Growthdeck Team
23 September 2022News EIS
Note: The contents of this article are the author's opinion and have not been approved as a financial promotion.
UK PE Deals by High Net Worth Individuals Reached £2.64bn in 2022
I-Phyc Completes Round of Fundraising with Growthdeck
UK’s CGT Bill Breaks £15bn for the First Time
Growthdeck Supports UK’s Medical Cannabis Leader With New Capital
The news that the Chancellor has decided to renew both the Enterprise and Seed Enterprise Investment Schemes (EIS and SEIS) is a “massive vote of confidence” in these flagship growth business investment schemes.
The schemes, which had been due to expire in 2025, will both be extended. The Seed Enterprise Investment Scheme (SEIS) has also seen its investment cap increased to £250,000 and the maximum age of the business raising capital increased to three years.
Simon Emary, our COO, says:
“The Chancellor’s decision to back EIS and SEIS is a shot in the arm for growth businesses in the UK and for the economy overall.”
“EIS has been a huge net positive for the economy and the tax base over the last 28 years. It has helped many thousands of businesses to grow and created a vast number of jobs.”
“Enabling SEIS to do more to get funding to smaller scaleup businesses is another big positive. A lot of people in the investment industry have long felt that its impact has been limited by the restictive cap on the size of investment people can make through it. It’s good to see the Government take a step toward improving that.”
EIS is an investment scheme which allows private investors to make tax savings by investing in growth businesses. The EIS allows investors to:
- Invest up to £1million per annum
- Reclaim 30% of the cost of investment against their income tax bill
- To not pay Capital Gains Tax (CGT) on any gains realised after three years
- Claim further income tax relief should an investment result in any form of loss
- Defer capital gains tax due on the sale of another asset by re-investing the gain in an EIS-qualifying company
- Save inheritance tax on any EIS-qualifying shares held for over two years
You can find more information over in our EIS Guide.
Previous Back to index Next