The changes to Capital Gains Tax have notably increased interest in SEIS, particularly among affluent investors.

The increased interest in SEIS is largely attributed to the Labour government's recent changes to Capital Gains Tax, which have sparked a surge in demand from high net-worth individuals and independent financial advisors.

Fuel Ventures has announced a new £5 million fund aimed at investing in UK startups under the Seed Enterprise Investment Scheme (SEIS), responding to the Labour government's recently criticized budget.

Since April 2023, the annual investment limit for SEIS has doubled from £100,000 to £200,000, making it even more attractive to potential investors.

The SEIS initiative provides significant tax incentives, including a 50% Income Tax relief on contributions, to encourage private investment in early-stage businesses.

Mark Pearson, founder of Fuel Ventures, emphasized that while SEIS investments carry higher risks, the tax incentives help mitigate those risks, making them appealing in the current market.

The current SEIS fund aims to support early-stage companies by providing necessary capital while offering investors access to high-growth opportunities with tax advantages.

In a notable comparison, Fuel Ventures plans to invest £2 million in the upcoming month, which exceeds the total £15.5 million invested by Dragons on the 'Dragon's Den' show over its 21 seasons.

This investment plan also aims to surpass the total amount invested by Peter Jones throughout his 20-year tenure on BBC's 'Dragon's Den'.

Fuel Ventures positions itself as one of the most active venture capital firms in Europe, ready to provide capital for high-potential startups while maximizing tax efficiency for investors.

Overall, the SEIS program continues to play a crucial role in encouraging investment in early-stage businesses through its robust tax incentives.

Pearson noted a significant rise in high net-worth individuals seeking tax-efficient investment strategies following the budget announcement.