RECORD YEAR FOR EIS AND SEIS INVESTMENTS

The National Statistics publication produced by HM Revenue and Customs (HMRC) reports a record year for EIS and SEIS Investments. The latest statistical findings, published on May 17th, 2023, reveal that investments in both schemes have reached record levels, surpassing £2.5 billion in total investment last year.

Specifically, the figures demonstrate that EIS investment in 2021-22 amounted to £2.3 billion, a noteworthy increase of 39% compared to the previous year. Additionally, SEIS investments experienced remarkable growth in 2021-22, reaching a total of £205 million, a 16% rise compared to the previous year. You can read the full report here.

Since the inception of these schemes, a cumulative investment of nearly £30 billion has been made into over 53,000 companies. While the majority of investments were concentrated in London and the South East, there was substantial growth in the South West, along with Scotland and the West Midlands experiencing substantial growth, with investments through the schemes rising by 61% and 54% respectively.

This development is expected to contribute to revitalising the UK’s economy and solidifying the country’s position as a global hub for innovation.

As both EIS and SEIS continue to play a vital role in driving essential investments into small and early-stage businesses, Head of Strategic Partnerships at Fuel Ventures, James D’Mello said:

“The latest figures from HMRC reveal a promising trend in the SEIS and EIS schemes for the 21/22 tax year. With a notable 39% increase in total funds raised compared to the previous year, these results reflect growing confidence and support for innovative ventures, all over the UK. Also, given the increase in the number of people claiming tax relief, it shows the positive effect that these investments are being used by more and more people each year.” 

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. I’m also delighted to see that the total number of individuals claiming income tax relief under the EIS went up by 6,130.” 

Thanks to EIS and SEIS, the UK has a vibrant start-up scene and many founders believe that they would not have got the private investment needed to grow their businesses without the schemes. The SEIS and EIS are the leading schemes of their kind. For more information on EIS and SEIS, please download our free guides.