The government announced their mini budget last week and there are several changes that will have an effect on startups in the UK. Here is a summary of what you need to know and how it will affect your startup.
The Seed Enterprise Investement Scheme (SEIS) was introduced by the government to help with investing into SME’s. The plans in the latest budget has increased the amounts that startups can raise. From April 2023, the amount companies can raise through SEIS will increase from £150k to £250k. They have also increased the time that you can raise SEIS to 3 years.
The Enterprise Investment Scheme (EIS) was due to expire in April 2025 but this has now been extended. This was due to end in 2025 due to a sunset clause that was introduced by the EU.
Companies are currently able to issue shares to their employees through the Company Share Option Plan (CSOP). From April 2023 companies will now be able to issue £60k of Company Share Option Plan (CSOP) options to employees, up from the current £30k limit.