New SEIS limits: Royal Assent in July 2023

Historical update, originally published 13 July 2023. The changes discussed below became law in 2023. This note was reviewed on 21 September 2026. For current planning, read SEIS explained and our advance assurance application guide.

The wait for legislation was over. Finance Act 2023 enacted the expanded SEIS limits, with the relevant changes taking effect from 6 April 2023.

What changed?

The changes increased the company funding limit from £150,000 to £250,000, the individual annual subscription limit from £100,000 to £200,000, the gross-assets limit from £200,000 to £350,000 and the new-trade age limit from two years to three years. The statutory commencement provisions determine which share issues and tax years benefit. Finance Act 2023, section 15.

Why Royal Assent mattered

Between 6 April 2023 and enactment, founders and advisers were planning investments against announced changes that had not yet completed the legislative process. Advance assurance correspondence needed to address that uncertainty. Royal Assent removed the need to treat these particular limit increases as proposals.

That did not turn advance assurance into a guarantee of tax relief. An assurance concerns the proposed transaction and facts disclosed. Company and investor conditions still apply, and the later compliance process remains necessary.

What founders could do next

Companies could plan qualifying share issues using the expanded limits, subject to available headroom and every other condition. Investors could consider the higher annual subscription limit for the relevant tax year, subject to eligibility and enough income tax liability to use the relief.

The boundaries matter. The assets test permits no more than £350,000 immediately before the issue, applying group rules where relevant. Trade age is measured by the statutory new-qualifying-trade rules, including relevant history under a previous owner. A company's incorporation date alone does not settle the question. ITA 2007 s.257DI and s.257HF.

Applying the changes today

The 2023 announcement is useful context, but a current funding decision needs a current review. Check earlier SEIS investment and relevant aid, any EIS or VCT investment, company structure, share rights and the investor's own position. After a qualifying issue, the company must complete the SEIS1 and SEIS3 process before investors can use their certificates to claim relief.