The Enterprise Investment Scheme (EIS) plays a central role in encouraging private investment into early-stage and high-growth UK companies. From 6 April 2026, several changes to the regime will take effect, increasing the amount of capital that qualifying companies can raise through EIS.

The reforms are intended to strengthen the UK venture ecosystem and support businesses that require significant investment to develop and scale their products and technologies.

Key EIS changes from April 2026

From April 2026, the following EIS investment limits will increase:

  • Annual investment limit: from £5 million to £10 million
  • Annual limit for knowledge-intensive companies: from £10 million to £20 million
  • Lifetime investment limit: from £12 million to £24 million
  • Lifetime limit for knowledge-intensive companies: from £20 million to £40 million

In addition, the gross assets test will increase to:

  • £30 million immediately before investment, and
  • £35 million immediately after investment

The 30% income tax relief available to EIS investors remains unchanged, continuing to provide a strong incentive for individuals investing in early-stage companies.

Supporting businesses through the growth cycle

One of the historic challenges with EIS has been that companies can outgrow the regime relatively quickly as they scale and raise larger funding rounds.

By significantly increasing the investment limits, the government is enabling companies to raise larger amounts of capital through EIS and continue doing so later in their development.

This additional capacity is particularly valuable for businesses operating in sectors where research, development and commercialisation require substantial upfront capital.

The higher limits also give companies greater flexibility to structure larger investment rounds with EIS participation, helping them access capital while maintaining investor appetite.

What businesses should consider

Companies planning future funding rounds should consider how the revised thresholds may affect their fundraising strategy.

The reforms provide additional headroom for companies transitioning from start-up to scale-up, enabling them to continue attracting investment during critical growth phases.

Alongside the planned expansion of the EMI regime, the changes signal a continued focus on supporting innovative UK businesses by strengthening both employee ownership incentives and investor tax reliefs.

How we can help

If you are considering raising investment under EIS, or would like to understand how the new limits may affect your future funding strategy, please contact the CT team. We would be happy to discuss how the regime can support your growth plans.