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Spring Budget 2024: Chancellor to reverse changes to angel investment rules in boost for UK entrepreneurs

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Jeremy Hunt branded inheritance tax “profoundly anti-Conservative”, but did not say whether death tax cuts would be on the table.
Jeremy Hunt branded inheritance tax “profoundly anti-Conservative”, but did not say whether death tax cuts would be on the table.

The Chancellor will use the upcoming Spring Budget to reverse changes to angel investment rules, providing a boost to UK entrepreneurs, The Telegraph has reported. 

Earlier this year, Jeremy Hunt faced backlash from hundreds of start-up and tech investors after raising the income threshold used to define so-called high net-worth individuals from £100k to £170k. 

The move sparked concern from the sector who said it cut off investment ownership protection for angel investors. 

In January, over 500 firms and investors coordinated by lobby group the Start-Up Coalition wrote a letter to Hunt urging him to back down on plans to redefine “high net worth individuals” which they warned could block investors from backing tech innovations and start-ups.

The row’s origins stretch back to 2001 when government passed a law to certify ‘sophisticated investors’ and high net worth individuals and allow them to access certain riskier investment products.

The Telegraph said it understands that the “previous thresholds of £100k for income, or £250k for net assets, will be reinstated”.

A Treasury source told City A.M:  “We are taking quick and decisive action to address concerns raised by industry about the impact this could have on angel investors.

“By having thresholds at lower levels, we’re ensuring our investment environment remains diverse, and that business can continue to access the capital they need to innovate and scale up, as part of our plan to boost the economy.”