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Mini-Budget 2022: Investor Incentives

SEIS - Increase in amount companies can raise

23 Sep 2022

Today the Chancellor announced an increase in the generosity of the SEIS scheme, increasing the amount that a company can raise under the scheme from £150,000 to £250,000 from April 2023.

In addition, he announced that to enable more emerging entrepreneurs to be able to take advantage of the SEIS scheme, the gross asset limit will be increased to £350,000 from the current £200,000 limit for companies that can benefit.

Furthermore, the age of the eligible companies has also been increased, allowing companies that have been active for up to 3 years to use the scheme, where previously this was only 2 years.

Company Share Option Plan (CSOP)

The current scheme allows qualifying companies to issue up to £30,000 worth of share at a fixed price through CSOP options to employees free of tax and national insurance on the difference between the price paid and their actual worth to use as a tool to incentivise staff. This limit will be increased to £60,000 from April 2023.

Other rules for the scheme will also be eased to closer align the scheme with the Enterprise Management Incentive Scheme and allow more growth companies to utilise it for benefit.

Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT)

No specific details of changes have been announced except that the Government remains encouraged by the benefit of these schemes and will be extending them into the future beyond 2025.

R&D tax credits

No changes were announced today, following the review in 2021 but further reforms are not off the table at future budgets.

Long-term Investment for Technology & Science

The Government will launch a Long-term Investment for Technology and Science (LIFTS) competition providing up to £500 million to support new funds aiming to crowd billions of pounds of private investment into UK science and technology businesses. It is intended that a call for proposals will be launched shortly and for funds to go live as soon as possible next year.

Annual investment allowance

Details of the changes announced today

Investment zones

Details of the benefits planned investment zones will deliver to regions to create and drive growth.

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