HMRC reports record-breaking EIS and SEIS investments

HM Revenue and Customs (HMRC) has released its latest Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) figures for 2021-22.

They reveal that investment in SEIS and EIS growth companies has reached an all-time high, with total investment last year amounting to more than £2.5billion.

And they also confirm that the two programmes continue drive vital investment into small and early-stage businesses.

EIS and SEIS provide income tax relief for investors who commit their capital for a number of years. Investors also qualify for some capital gains tax reliefs.

The latest figures follow lower levels of investment in the previous two years. And they show that the total EIS investment in 2021-22 was £2.3bn, a significant increase of 39 per cent compared to the previous year.

SEIS investments also saw impressive growth in 2021-22, with total investments reaching £205million, a 16 per cent increase compared to the previous year.

Seed Enterprise Investment Schemes are limited to companies with under 25 employees and £350,000 in net assets.

Almost £30bn has now been invested into more than 53,000 companies since the two schemes were first created.

Christiana Stewart-Lockhart, director general of the EIS Association, said: “These figures demonstrate the continued success of the EIS and SEIS in driving innovation and entrepreneurship across the UK by encouraging investment in small and early-stage businesses.

“It is fantastic to see such significant growth in investment across the regions and devolved nations and this has been a key priority for EISA.

“We are delighted to see more and more entrepreneurs securing the much-needed investment through these schemes, which will help to drive economic growth and create jobs in all areas of the UK.”

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