SEIS and EIS explained for founders (2026/27)

Why investors care

SEIS and EIS give UK taxpayers income tax relief when they buy new shares in a qualifying company, plus capital gains tax benefits if they hold the shares for at least three years. For many angels it's the difference between investing and not.

SEIS at a glance

Investors get 50% income tax relief, on up to £200,000 a year.

Your company can raise up to £250,000 under SEIS in total. At the time of the share issue you need gross assets of no more than £350,000, fewer than 25 full-time equivalent employees, and a trade that started less than three years ago.

SEIS limits were unchanged in the Autumn Budget 2025.

EIS at a glance (from April 2026)

Investors get 30% income tax relief, on up to £1m a year, or £2m if at least £1m goes into knowledge-intensive companies.

From 6 April 2026 a company can raise up to £10m a year under EIS (£20m for knowledge-intensive companies) and £24m in its lifetime (£40m for knowledge-intensive). The gross assets limits rose to £30m before and £35m after the issue. You need fewer than 250 employees (500 for knowledge-intensive), and generally your first commercial sale must be within the last seven years (ten for knowledge-intensive).

EIS has been extended to shares issued before 6 April 2035.

Advance assurance

Advance assurance is HMRC's view, before you raise, that your company and the shares will qualify. It's optional, but most investors expect it. You apply online using HMRC's advance assurance form, with your business plan, forecasts, latest accounts, articles, shareholder register and how you'll use the money.

After the shares are issued and the conditions are met, you file a compliance statement (SEIS1 or EIS1). HMRC then lets you issue SEIS3 or EIS3 certificates, which your investors use to claim relief.

Common mistakes

Issuing shares before you've checked the scheme rules. Taking money in as a loan and converting it later. Giving investors preference rights that disqualify the shares. Using SEIS money for things that aren't the qualifying trade. If in doubt, talk to an accountant who handles SEIS and EIS every week.