EIS relief

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FORTHCOMING CHANGES to EIS and VCT financial limits and call for evidence on tax support for entrepreneurs: At Budget 2025, the government announced a reduction in the upfront income tax relief for an individual on the amount invested in a VCT from 30% to 20%. The upfront income tax relief for EIS remains at 30%.

It also announced three measures relating to both the EIS and VCT schemes:

  1. •

    an increase to the annual investment limits that companies can raise under the EIS and VCT schemes from £5m to £10m and from £10m to £20m for knowledge-intensive companies (KICs)

  2. •

    an increase in the lifetime company risk finance investment limit from £12m to £24m and from £20m to £40m for KICs, and

  3. •

    an increase in the gross assets limit that an investee company must not exceed from £15m to £30m before the shares are issued, and from £16m to £35m, after that point

These changes are to be legislated in Finance Bill 2026 to take effect from 6 April 2026.Also at Budget 2025, the government published a call for evidence (closing date: 28

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