Emma Bird Tax Transactions Director

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Emma Bird

Tax Transactions Director

Emma is both an ACA qualified accountant and qualified chartered tax adviser, enabling her to take a holistic and commercial view of tax planning opportunities by understanding the impact planning will have on a company’s accounts.

In addition, her background in working with entrepreneurial and owner managed businesses has provided her with significant experience in dealing with both personal and corporate tax matters.

Her areas of specialism include advising on the Enterprise Investment Scheme, schemes of reconstruction, employee incentive schemes (including the Enterprise Management Incentive scheme), the residence position of both individuals and companies, and VAT.

16 Oct 2023

The government’s announcement of changes to the Seed Enterprise Investment Scheme (SEIS) in the September 2022 mini-budget has brought a welcomed shift for entrepreneurs and investors. Effective from April 2023, these alterations mark a new positive chapter in the startup landscape and have now received Royal Assent.

WHAT HAS CHANGED?

Investment Limits

The most notable adjustment in the updated SEIS is the expansion of investment limits. Previously set at £150,000 per company, this threshold has now been increased to £250,000. This increase provides startups with more substantial financial backing to realise their ideas, while investors can diversify their investments further with the individual investor limit increasing from £100,000 to £200,000 per annum.

Age Limit

The eligibility criteria for qualifying companies have undergone a shift to accommodate more mature startups. Previously, SEIS was limited to businesses within their first two years of trading, however this has now been increased to businesses within their first three years of trading. This alteration acknowledges and allows businesses more time to show their growth to potential investors, recognising that it can take time for startups to get going.

Gross Assets Limit

A key addition to the altered SEIS qualifying criteria is the elevation of the gross asset threshold, with the previous £200,000 ceiling lifting to £350,000. This modification recognises the evolving nature of startups as they progress and accumulate assets. As a result, startups with slightly larger asset bases can still benefit from the SEIS advantages, creating more inclusive qualifying criteria.

CONCLUSION

The April 2023 alterations to the SEIS reflect a strategic effort to enhance the startup landscape by addressing practical considerations. The adjusted investment limits and broader eligibility criteria all contribute to a more balanced and supportive environment for both entrepreneurs and investors. As we enter this new phase of SEIS, the potential for fostering innovation and fostering business growth is palpable, promising positive outcomes for the UK’s entrepreneurial ecosystem, especially at a time where individuals, including investors, are conscious of the increased cost of living.