The UK Government has made significant (and very welcome) changes to the UK's Seed Enterprise Investment Scheme Seed Enterprise Investment Scheme ("SEIS"). These changes should make it easier for early-stage companies to attract angel investors.
Here's what's changed:
Increased Maximum Investment:
Startups can now raise up to £250,000, a significant increase from the previous £150,000 limit.
Expanded Eligibility Criteria:
Businesses with assets up to £350,000 now qualify for SEIS, up from the earlier £200,000 cap.
Extended Trading Limit:
Companies that have traded for three years can now benefit from SEIS, an extension from the previous two-year limit.
Larger Annual Investor Limit:
Individual investors can now invest up to £200,000 in a single tax year, a noteworthy increase from the former £100,000 limit.
The changes to SEIS are welcome and better reflect the realities of raising a pre-seed or seed round from angels in the UK in 2023.
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