The Enterprise Investment Scheme just got significantly more powerful. From 6 April 2026, the Finance Act 2026 doubled the company-side limits for EIS — meaning more scaling businesses can access it, for more capital, for longer. If you're planning a raise in the next 12 to 18 months, this changes the conversation.
What Changed
The Finance Act 2026 doubled several EIS company limits with effect from 6 April 2026:
| Limit | Before April 2026 | From April 2026 |
|---|---|---|
| Annual fundraising cap | £5 million | £10 million |
| Lifetime fundraising cap | £12 million | £24 million |
| Gross assets threshold | £15 million | £30 million |
| KIC annual cap | £10 million | £20 million |
| KIC lifetime cap | £20 million | £40 million |
SEIS limits are unchanged. The expanded rules apply to EIS shares issued on or after 6 April 2026.
Why This Matters
EIS isn't just a compliance structure — it's a fundraising tool. It works because it de-risks the investment for your investors. A higher-rate taxpayer investing £100,000 into an EIS-qualifying company receives 30% income tax relief immediately, reducing their effective cost to £70,000 before they know how the business performs. Losses can be offset. Gains are CGT-exempt if shares are held for three years.
That structure makes your equity significantly more attractive than it would otherwise be — particularly for angel investors, syndicates, and high-net-worth individuals who are weighing up multiple opportunities. In practical terms, EIS-qualifying shares are easier to sell than non-qualifying ones.
The doubled limits extend how long a company can keep offering that advantage. Companies that previously used up their EIS headroom, or were approaching the old gross asset threshold, now have considerably more runway to raise qualifying investment.
Who Can Now Qualify That Couldn't Before
The gross asset threshold doubling to £30 million is the most significant change for growing businesses. Under the old rules, a company with £16 million in gross assets was close to the edge. Now that same company has substantial headroom remaining.
For Knowledge Intensive Companies — typically tech, AI, biotech, deep tech, and innovation-led businesses with significant R&D expenditure or a high proportion of R&D employees — the annual limit is now £20 million and the lifetime limit £40 million. If your business has meaningful R&D spend or your team is predominantly technical, KIC status is worth assessing specifically.
SEIS Still Comes First
SEIS and EIS are designed to work in sequence. SEIS covers the earliest stage — companies under three years old, gross assets under £350,000, maximum company raise of £250,000. Investors receive 50% income tax relief, making it even more attractive than EIS at that stage.
Once you've raised your SEIS round, EIS is the natural next step as you scale. One critical rule: SEIS shares must always be issued before EIS shares. The order matters and can't be reversed.
For companies already past SEIS and mid-way through their EIS capacity, the expanded limits may mean you have more room than you thought.
What Founders Should Do Now
Whether you're approaching a first raise or planning a follow-on round, EIS structuring needs to be part of the conversation early — not bolted on after term sheets are being negotiated.
- Check your current EIS headroom. How much have you raised under EIS to date? The new lifetime limit of £24 million means your remaining capacity may be significantly higher than you previously thought.
- Apply for Advance Assurance before you pitch. Most professional investors won't commit without it. HMRC typically responds within four to six weeks — apply before you start approaching investors, not after interest is confirmed.
- Assess KIC status. If your business has significant R&D expenditure, the higher KIC limits could unlock considerably more capital. This is worth a specific review.
- Keep clean deployment records. HMRC enquiries into EIS rounds typically focus not on the share structure but on what the money was spent on. Clear, documented records from the date of investment protect the relief for your investors.
- Sequence carefully if using both schemes. If you've used SEIS and are moving to EIS, the order of share issuance matters. Get this right from the start.
For the full eligibility conditions, see HMRC's EIS guidance.
The EIS changes in April 2026 are the most significant expansion of the scheme since it launched. For founders at the growth stage, it opens up more capital, from more investors, for longer.
If you're planning a raise and want to understand how EIS fits into your funding strategy, speak to a Runway co-founder.
