The EIS limits doubled on 6 April 2026. We check which limits apply to your company and prepare the advance assurance application for £499 + VAT.
EIS suits a company that has outgrown SEIS or is raising more than SEIS allows. Investors can claim 30% income tax relief, and the application uses the same online form and documents as SEIS.
| Standard company | Knowledge-intensive company | |
|---|---|---|
| Raised in any 12 months | £10m (was £5m) | £20m (was £10m) |
| Raised in the company's lifetime | £24m (was £12m) | £40m (was £20m) |
| Gross assets | £30m before the issue, £35m after (was £15m and £16m) | the same as a standard company |
| Employees | fewer than 250 full-time equivalent | fewer than 500 full-time equivalent |
| Age | within 7 years of first commercial sale | within 10 years of first commercial sale, or of turnover first going over £200,000 |
A knowledge-intensive company gets the higher limits. It has to meet two tests (HMRC guidance).
The first is about spending. Research, development or innovation costs must be at least 10% of operating costs in each of 3 years, or at least 15% in one of those 3 years.
The second can be met in one of two ways. Either the company is creating intellectual property and expects most of its business to come from it within 10 years, or for at least 3 years at least 20% of its employees work in research, in roles that need a relevant Masters degree or higher.
Our post on knowledge-intensive companies and the EIS limits works through an example.
Count everything the company has raised under EIS, SEIS and from venture capital trusts in the last 12 months and over its life, and test the gross assets, employee and age limits against the table above.
If it meets the tests, the application should say so and include the evidence, because the higher limits depend on it.
HMRC asks for the same documents as for SEIS: the amount being raised, the business plan and forecasts, accounts, articles, register of members and investor documents. Our SEIS advance assurance page lists them in full.
EIS uses the same online advance assurance form as SEIS. HMRC replies with a statement of whether the investment is likely to qualify.
An EIS investor can claim income tax relief of 30% of the amount invested, on up to £1m a tax year, or £2m if at least £1m of it goes into knowledge-intensive companies. They can also defer Capital Gains Tax on 100% of the investment. The shares must be held for 3 years (HMRC, tax relief for investors).
From 6 April 2026 the income tax relief for investors in venture capital trusts fell from 30% to 20%. EIS relief stayed at 30%.
The amounts a company can raise doubled. A standard company can now raise £10m in any 12 months and £24m in its lifetime, up from £5m and £12m. A knowledge-intensive company can raise £20m and £40m, up from £10m and £20m. The gross assets limits rose to £30m before a share issue and £35m after, from £15m and £16m.
Yes. The annual limit counts investment in any 12 months across EIS, SEIS, venture capital trusts and Social Investment Tax Relief.
A Northern Ireland company trading in goods, or in wholesale electricity, is a specified company and keeps the old limits: £5m a year, £12m lifetime, and gross assets of £15m before and £16m after. A knowledge-intensive specified company keeps £10m a year and £20m lifetime.
HMRC's internal manual says it aims to respond to most applications within 15 working days and complex cases within 40 (VCM60170).
Income tax relief of 30% of the amount invested, on up to £1m a tax year, or £2m if at least £1m of it goes into knowledge-intensive companies. They can also defer Capital Gains Tax on 100% of the investment, and must hold the shares for 3 years.
Our fee is £499 + VAT, the same as for SEIS. The compliance statement and investor certificates after the round are £599 + VAT.
