HMRC Reports Record-Breaking EIS & SEIS Investments
HM Revenue & Customs (HMRC) has released its latest Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) data for 2021 - 22.
The figures show that investment in SEIS and EIS growth companies has reached an all-time high, with total investment last year amounting to more than £2.5 billion. This is a recovery following lower levels of investment in the previous two years. The figures show that the total EIS investment in 2021-22 was £2.3 billion, a significant increase of 39% compared to the previous year.
SEIS investments also saw impressive growth in 2021-22, with total investments reaching £205 million, a 16% increase compared to the previous year.
A total of nearly £30 billion has now been invested into more than 53,000 companies since the SEIS and EIS were created.
Whilst the majority of investment was in London and the South East, there was substantial growth in investment in the regions and devolved nations. The South West saw the greatest change with investment through the SEIS and EIS increasing by an impressive 87% compared to the previous year. Scotland and the West Midlands also saw significant additional investment through SEIS and EIS with increases of 61% and 54% respectively.
Commenting on the figures, 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. In particular, the growth in the South West is very encouraging. 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.”
The HMRC data will be welcomed by investors and entrepreneurs alike, as it confirms that the EIS and SEIS continue drive vital investment into small and early-stage businesses. This is likely to provide a boost for the UK’s economy in the post Covid recovery and helps to secure the UK as one of the innovation capitals of the world.