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”.
City A.M has contacted The Treasury for a comment.