The new EIS limits are now in force, which is great news for scaling businesses as the amount a company can raise through the Enterprise Investment Scheme (EIS) has been doubled.
HM Treasury shared that entrepreneurs, start-ups and scale-ups are to receive a boost with a package to unlock private investment and double tax reliefs.
Rt Hon Rachel Reeves introduced the package for entrepreneurs at Budget 2025, and together these changes are expected to support around £100 million of additional investment a year.
‘The EIS and VCT lifetime company investment limits will double to £24 million, and the annual company investment limits will increase to £10 million.’ For Knowledge Intensive EIS, this is increasing £40 million.
Chancellor of the Exchequer, Rachel Reeves, said:
“I am backing business with a more active state that’s making big commitments to industry. I have taken steps to unlock £100 million a year for new investment in the businesses founded by our wealth creators so they can access the finance critical to their success.”
Irene Graham OBE, CEO at ScaleUp Institute, said:
“The changes now in effect for EIS / VCT / EMI make a tangible difference to businesses scaling across sectors and geographies as they progress their global growth ambitions.”
Thanks to Alexandra Depledge MBE for leading work to ensure the UK is a great place to start and scale a business.
You can read more via GOV.UK here.