Autumn Budget 2025: A Major Boost for Startups and Investors

The Enterprise Investment Scheme (“EIS”) has been one of the UK’s most effective tools for encouraging investment in early-stage businesses.

The Autumn Budget 2025 has taken that a step further, with significant increases to key limits from 6 April 2026 and the potential to unlock more investment for growing businesses.

What’s changed?

From 6 April 2026, the following EIS thresholds have been increased:

• Gross Assets Requirement: The cap rises from £15m to £30m immediately before the share issue and £35m immediately afterwards, bringing more growing businesses within scope.
• Annual Investment Limit (Company): Companies can now raise up to £10m per year under EIS, up from £5m.
• Lifetime Investment Limit (Company): The combined EIS and VCT funding cap has doubled from £12m to £24m.

You still have compliance to navigate

Although the limits are now far more generous, the compliance requirements remain tight. If the EIS requirements are not met, investors may lose the tax relief they expect. A well-structured round complying with HMRC rules is essential to ensuring both the company and its investors can benefit from the available tax reliefs. Compliance and guidance is a core specialism for Gannons.

Our corporate team can help you:

• Check eligibility against the expanded and existing EIS criteria.
• Prepare Advance Subscription Agreements to allow investment funds to be received before shares are issued, without losing relief.
• Secure Advance Assurance from HMRC, giving potential investors greater confidence before they commit.
• Prepare and review all documentation to ensure the raise is structured properly from a legal and tax perspective.
• Manage post-investment filings to help protect the investor reliefs.

If you’re planning a fundraise, the benefits of EIS are an opportunity you don’t want to miss. Get in touch and we’ll help you make the most of the expanded EIS limits.