By Michael Blakeley. Last checked against HMRC guidance: September 2026.
If you are raising your first round in the UK, SEIS and EIS will come up in almost every investor conversation. Most angels expect them. Some will not invest without them.
The rules changed on 6 April 2026. The EIS company limits doubled. SEIS did not change. This page sets out where things stand now, what trips founders up, and where SEIS and EIS money actually comes from.
What changed on 6 April 2026
The Finance Act 2026 raised the EIS limits on the company side. Nothing changed for investors under EIS, and nothing changed under SEIS.
| EIS company limit | Before 6 April 2026 | From 6 April 2026 |
|---|---|---|
| Annual raise | £5m | £10m |
| Annual raise, knowledge-intensive company | £10m | £20m |
| Lifetime raise | £12m | £24m |
| Lifetime raise, knowledge-intensive company | £20m | £40m |
| Gross assets before the share issue | £15m | £30m |
| Gross assets after the share issue | £16m | £35m |
What did not change: investor relief under EIS stays at 30%, the employee limits stay the same, and SEIS is untouched. The same Act cut relief on Venture Capital Trusts from 30% to 20%. That affects VCT investors rather than companies raising under EIS directly.
What it means for a founder: a company can now stay inside EIS for much longer. Growth rounds that used to fall outside the gross assets test can now qualify, so EIS is no longer something only early-stage companies can use.
Companies in Northern Ireland that trade in goods or electricity stay on the old limits.
SEIS and EIS at a glance: the company
| SEIS | EIS | |
|---|---|---|
| Most you can raise | £250,000 in total | £10m a year, £24m in total |
| Gross assets | Not over £350,000 when shares are issued | Not over £30m before and £35m after the issue |
| Employees | Fewer than 25 full-time equivalent | Fewer than 250 full-time equivalent |
| Age | Trade carried on for no more than 3 years | Within 7 years of your first commercial sale |
| Spend the money within | 3 years of the share issue | 2 years of the investment, or of starting to trade if later |
Knowledge-intensive companies get more room under EIS: £20m a year and £40m in total, fewer than 500 employees, and 10 years from the first commercial sale rather than 7.
The SEIS £250,000 includes any other de minimis state aid the company has received in the previous three years. If you have had a grant, check whether it counts against the same pot.
SEIS and EIS at a glance: the investor
| SEIS | EIS | |
|---|---|---|
| Income tax relief | 50% | 30% |
| Investor annual limit | £200,000 | £1m, or £2m if at least £1m goes into knowledge-intensive companies |
| Minimum hold | 3 years | 3 years |
| Capital gains on sale | Exempt | Exempt |
| Other gains | 50% of the amount invested is exempt from CGT, up to £100,000 of relief a year | Gains on other assets can be deferred |
| If the company fails | Loss relief against income | Loss relief against income |
This is why SEIS matters so much at the earliest stage. An angel putting £20,000 into a SEIS round gets £10,000 back against their income tax. On a first cheque into an unproven company, that halves what they have at risk, and most angels know it.
The order: SEIS first, then EIS
You can use both, but the order matters. Once you have issued EIS shares, you can no longer issue SEIS shares. The same applies if you have had VCT money. So a company planning both raises the SEIS portion first, and issues the SEIS shares before any EIS shares. Most founders close the SEIS shares on an earlier day than the EIS shares. Confirm the mechanics with your lawyer before completion.
A common first-round structure is a SEIS tranche up to £250,000 with an EIS tranche on top, so investors who want the higher relief get it, and the round can be larger than SEIS alone allows.
Advance assurance
Advance assurance is HMRC confirming in advance that your share issue is likely to qualify. It is not a legal requirement, but most angels will ask whether you have it, and many will not invest until you do.
- Who applies: a director, the company secretary, or an agent with a signed letter dated within the last three months. It is an online form on gov.uk.
- Investors: HMRC will usually ask for details of your potential investors, and will not give an opinion on a speculative application. Apply when you have real names in the conversation, not before.
- Timing: HMRC does not publish a turnaround time. Apply well before you need the money.
After the round: the compliance statements
The relief is only claimed once the company files a compliance statement and HMRC issues certificates to investors.
- SEIS1: file once the company has traded for at least four months, or has spent at least 70% of the money raised.
- EIS1: file once the company has carried out its qualifying activity for four months. The deadline is two years from that date, or two years from the end of the tax year the shares were issued in, whichever is later.
Investors cannot claim until they have their certificate, so a late compliance statement is a problem for them as well as for you.
What trips founders up
- Excluded trades. A company can fail to qualify if more than 20% of its trade is in excluded activities. These include financial and legal services, property development, leasing, hotels, nursing homes, farming and energy generation. HMRC’s full list is in its Venture Capital Schemes Manual at VCM3010.
- The 30% rule. An investor who, with their associates, holds more than 30% of the shares or voting rights gets no income tax relief. Under SEIS this is tested from the company’s formation. Under EIS it runs from two years before the investment.
- Directors. SEIS relief is available to directors. EIS relief is not available to paid directors, apart from specific permitted payments.
- Risk to capital. The company must be aiming to grow its trade over the long term, and the investment must put the investor’s capital at real risk. Structures built mainly to deliver the tax relief do not qualify.
- The three years after the investment. Both schemes have rules the company must keep for at least three years after the investment. Breaking them can withdraw investors’ relief after the fact.
- The money deadline. Money raised has to be spent on the qualifying trade within the time limit: three years for SEIS, two for EIS.
Where SEIS and EIS investors actually come from
Qualifying is the easy part. Finding the investors is where most of the time goes.
Angels. Angels are the natural fit for SEIS. The 50% relief is written for individuals, and a £250,000 cap is small against most fund cheques. The best introductions are warm ones. A 2026 directory of UK angel networks found that 70% of angel-group investments came through warm referral, and those deals averaged £152,000 against £69,000 for cold approaches.
SEIS and EIS funds. Several managers run dedicated SEIS or EIS funds. One thing catches founders out: SEIS or EIS status belongs to a fund vehicle, not to the firm. The same manager can run an EIS fund, a VCT and a fund that is neither. When you approach a manager, find out which vehicle you are being considered for. Our list of SEIS investment funds in the UK is a starting point.
Networks and syndicates. Angel networks and syndicates pool cheques, which helps fill a round faster. Some charge the founder, some charge the investor, and some take a success fee on money raised. Ask before you sign up.
Pitch events. A room of active investors, all there to see companies that are raising now, is the quickest way to get in front of several SEIS and EIS investors at once. That is what our Speed Pitch is for. Every founder is screened on a call before they get a slot, and most who pitch are SEIS or EIS eligible.
One thing SEIS and EIS will not do is make a weak round strong. Most UK early-stage companies qualify, so investors treat it as the minimum they expect. What gets a round funded is the business, the team, and who else is already in.
Raising more than £1m?
Once a round moves past SEIS scale into a larger EIS or Series A raise, the job changes. It stops being about filling a room and becomes a structured process across VCs, family offices and funds. Our sister company, Alator Capital, runs those raises. Its principals have led transactions totalling over £170 million.
Frequently asked questions
Did SEIS change in April 2026?
No. The SEIS limits are the same as before: £250,000 for the company, £200,000 a year for investors, and 50% income tax relief. The April 2026 changes were to EIS company limits and VCT relief.
Is the EIS employee limit now 500?
Only for knowledge-intensive companies, which it already was. The standard EIS limit is still fewer than 250 full-time equivalent employees.
Do I need advance assurance?
It is not required by law, but most angels will expect it before they invest.
Can I raise SEIS and EIS in the same round?
Yes, as long as the SEIS shares are issued before the EIS shares. Once EIS shares are issued, no further SEIS shares can be.
How long does EIS last?
The EIS sunset clause was extended in 2023 to cover shares issued before 6 April 2035.
Can investors claim relief straight away?
No. They claim once the company has filed its compliance statement and HMRC has issued their certificate.
Pitch to SEIS and EIS investors
If you are raising a SEIS or EIS round now, apply for a Speed Pitch. You will pitch face to face to a small room of active angels and early-stage investors, with no slides and no stage, and we screen every founder before the night.
This page is general information, not tax advice. The rules have detailed conditions, and your company’s position depends on its own facts. Take advice from an accountant or lawyer before relying on SEIS or EIS, and check the current rules on gov.uk.