Last updated: 27 September 2026
SEIS lets a young UK company raise up to £250,000 from investors who get 50% income tax relief, and EIS lets a more established company raise up to £10 million a year from investors who get 30% relief. Both require the money to be used for the company's qualifying business activity within a set time, SEIS within 3 years and EIS within 2 years, and both are worth confirming with HMRC through advance assurance before you raise.
This is general information, not tax or financial advice. Speak to a registered adviser about your situation. The rules below are as gov.uk gives them at the time of writing (September 2026).
SEIS and EIS at a glance
The Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) give tax relief to investors who buy new shares in qualifying companies. The relief goes to the investor, not the company. Here are the headline figures from HMRC's investor guidance and the company guidance pages.
| SEIS | EIS | |
|---|---|---|
| Investor income tax relief | 50% | 30% |
| Investor annual limit for relief | £200,000 | £1 million, or £2 million if at least £1 million goes into knowledge-intensive companies |
| Minimum holding period | At least 3 years | At least 3 years |
| Company raise limit | £250,000 in total | £10 million a year, £24 million lifetime (from 6 April 2026) |
| Gross assets limit | £350,000 when shares are issued | £30 million before issue, £35 million after (from 6 April 2026) |
| Employee limit | Less than 25 full-time equivalent | Less than 250 full-time equivalent |
| Company age test | Trade not carried on for more than 3 years | Within 7 years of first commercial sale |
| Time to use the money | Spent within 3 years of the share issue | Spent within 2 years of the investment, or of the date you started trading if that is later |
| Scheme end date | None (made permanent) | Sunset extended to 6 April 2035 |
On capital gains, the investor page says gains on SEIS shares can be exempt if income tax relief was given and the shares were held for 3 years. SEIS also offers reinvestment relief of "50% of investment, capped at £100,000". EIS offers capital gains deferral relief, and an exemption on disposal if the conditions are met.
Is your company eligible for SEIS?
According to the gov.uk SEIS company guidance, when the shares are issued your company must:
- not have been carrying out its qualifying trade for more than 3 years
- not have gross assets over £350,000
- have less than 25 full-time equivalent employees in total
- be established in the UK
- not be trading on a recognised stock exchange
- not have been controlled by another company since it was incorporated
The maximum a company can receive through SEIS is £250,000. These limits were raised for shares issued on or after 6 April 2023, according to a gov.uk policy paper: the raise limit went from £150,000 to £250,000, gross assets from £200,000 to £350,000, and the trade age from 2 to 3 years. The SEIS company page was last updated on 25 May 2023, and we found no later SEIS changes on gov.uk.
SEIS has no end date. A gov.uk measure made the scheme and its capital gains reinvestment relief permanent from 6 April 2014.
EIS limits from 6 April 2026
The 2025 Budget doubled the EIS company limits, effective 6 April 2026. A gov.uk policy paper published on 26 November 2025 sets out the changes.
| EIS limit | Before 6 April 2026 | From 6 April 2026 |
|---|---|---|
| Annual raise, most companies | £5 million | £10 million |
| Annual raise, knowledge-intensive companies | £10 million | £20 million |
| Lifetime raise, most companies | £12 million | £24 million |
| Lifetime raise, knowledge-intensive companies | £20 million | £40 million |
| Gross assets, before and after issue | £15 million / £16 million | £30 million / £35 million |
The EIS company guidance also requires fewer than 250 full-time equivalent employees when the shares are issued, and the investment must come within 7 years of your first commercial sale.
Knowledge-intensive companies
The knowledge-intensive company guidance allows up to £20 million in any 12-month period and £40 million in the company's lifetime. The employee limit is less than 500 full-time equivalent, and the window is 10 years from either your annual turnover going over £200,000 or your first commercial sale.
Northern Ireland exception
A "specified company", one with its registered office in Northern Ireland that trades in goods or the wholesale electricity market, stays on the old limits: £5 million in a 12-month period and £12 million in its lifetime.
The EIS end date
EIS has a sunset date. A November 2023 policy paper moved it from 6 April 2025 to 6 April 2035.
The same 2025 Budget change cut Venture Capital Trust (VCT) income tax relief from 30% to 20%. The investor page, updated on 6 April 2026, still shows SEIS relief at 50% and EIS relief at 30%.
How the money must be used, and by when
This is the rule that matters most when you plan your build.
SEIS: the money must be spent within 3 years of the share issue on a qualifying business activity. HMRC's manual (VCM33050) defines that as carrying on a new qualifying trade, preparing to carry one on, or research and development that the company intends should benefit or lead to a new qualifying trade. VCM33040 adds that if "an insignificant part of the money" is used for another purpose, it is disregarded.
EIS: the money must be used for a qualifying business activity and spent within 2 years of the investment or, if later, the date you started trading. It must not be used to buy all or part of another business. VCM12060 says the money must be "employed" wholly for that purpose, and "employed" goes beyond spending: money can be set aside and held in reserve.
UK permanent establishment: for SEIS, VCM34050 says the company must have a permanent establishment in the UK throughout the period the rules cover (HMRC calls it "period B"). That means a fixed place of business in the UK through which the business is wholly or partly carried on, and which is not merely preparatory or auxiliary, or a dependent agent in the UK with authority to conclude contracts. The gov.uk permanent establishment guidance adds that the business carried out there must "form an essential and substantial part of your business".
Our UK MVP cost guide sets out published build ranges and how to scope phase 1 within a SEIS raise.
Advance assurance: what HMRC needs and how long it takes
Advance assurance means asking HMRC whether it agrees that an investment would meet the scheme conditions. It is a view, not a binding ruling, and it "will not tell you if an investor would meet the conditions of the scheme", according to gov.uk.
You apply using HMRC's online form, which now covers all the schemes. gov.uk lists what to include:
- your business plan and financial forecasts
- your latest accounts
- details of how the money will be used
- draft investor documents
- your articles of association and share register
- usually, details of prospective investors
On timing, HMRC's manual (VCM60270) says HMRC "aims to respond to most applications within 15 working days", and within 40 working days for complex cases. Build that into your fundraising timeline.
Spending SEIS or EIS money on overseas contractors
This matters to us directly. DevForge is a software studio based in India, so a UK founder who hires us would be paying an overseas contractor.
We looked for a clear answer on gov.uk and did not find one. None of the gov.uk pages or HMRC manual pages we reviewed says, for or against, whether SEIS or EIS money can be spent on overseas contractors or suppliers. The permanent establishment guidance does not discuss outsourcing.
What the rules do say:
- The money must go to the qualifying business activity: the trade, preparing for it, or R&D leading to it.
- It must be used within the time limit: 3 years for SEIS, 2 years for EIS.
- The company itself must keep a UK permanent establishment that forms an essential and substantial part of the business, and is not merely preparatory or auxiliary.
Our own reading, which is not HMRC guidance, is that nothing we reviewed rules out paying a non-UK development team for work that is part of the qualifying business activity. But that is our interpretation, and HMRC has not confirmed it. The permanent establishment test is a separate condition your company must meet in its own right, whoever writes the code.
If you plan to use an offshore team, DevForge included, confirm it with your adviser before you raise. The best place to raise it is your advance assurance application: HMRC asks for details of how the money will be used, so describe the offshore development plainly there.
Key takeaways
- SEIS: up to £250,000 for the company, 50% relief for investors, money spent within 3 years. No end date.
- EIS: from 6 April 2026, £10 million a year and £24 million lifetime (£20 million and £40 million for knowledge-intensive companies), 30% relief, money spent within 2 years. Sunset extended to 6 April 2035.
- Get advance assurance. HMRC aims to reply within 15 working days, or 40 for complex cases.
- gov.uk does not clearly address overseas contractors. Ask your adviser, and put it in your advance assurance application.
This is general information, not tax or financial advice. Speak to a registered adviser about your situation.
How DevForge can help
DevForge is a founder-led studio that builds MVPs in 4 to 8 weeks, and you keep 100% of the code and IP. We work with UK founders under NDA. After a free 30-minute call, we give you a fixed estimate for phase 1, which you can share with your adviser and include in your advance assurance application. Book a free 30-minute call.
Read about our MVP development for UK founders, see our guide to MVP and app development cost in the UK, or visit our UK page.
Sources
- gov.uk (HMRC), "Tax relief for investors using venture capital schemes", https://www.gov.uk/guidance/venture-capital-schemes-tax-relief-for-investors, last updated 6 April 2026
- gov.uk (HMRC), "Apply to use the Seed Enterprise Investment Scheme to raise money for your company", https://www.gov.uk/guidance/venture-capital-schemes-apply-to-use-the-seed-enterprise-investment-scheme, last updated 25 May 2023
- gov.uk (HMRC), "Apply to use the Enterprise Investment Scheme to raise money for your company", https://www.gov.uk/guidance/venture-capital-schemes-apply-for-the-enterprise-investment-scheme, last updated 6 April 2026
- gov.uk (HMRC), "Use a venture capital scheme to raise money for your knowledge intensive company", https://www.gov.uk/guidance/use-the-enterprise-investment-scheme-eis-to-raise-money-for-research-development-or-innovation, last updated 6 April 2026
- gov.uk (HMRC), "Apply for advance assurance on a venture capital scheme", https://www.gov.uk/guidance/venture-capital-schemes-apply-for-advance-assurance, last updated 18 December 2024
- gov.uk (HMRC), "Venture capital schemes: permanent establishment", https://www.gov.uk/guidance/venture-capital-schemes-permanent-establishment, last updated 30 March 2017
- gov.uk policy paper, "Increasing the limits of the Seed Enterprise Investment Scheme", https://www.gov.uk/government/publications/venture-capital-schemes-expansion-of-the-seed-enterprise-investment-scheme-seis/increasing-the-limits-of-the-seed-enterprise-investment-scheme
- gov.uk, "Making the Seed Enterprise Investment Scheme and the Capital Gains Tax reinvestment relief permanent", https://www.gov.uk/government/publications/making-the-seed-enterprise-investment-scheme-and-the-capital-gains-tax-reinvestment-relief
- gov.uk policy paper, "Venture Capital Trusts, Enterprise Investment Scheme investment limit increase and restructure", https://www.gov.uk/government/publications/enterprise-investment-scheme-eis-and-venture-capital-trusts-vct-changes/venture-capital-trusts-enterprise-investment-scheme-investment-limit-increase-and-restructure, published 26 November 2025
- gov.uk policy paper, "Enterprise Investment Scheme and Venture Capital Trusts scheme extension", https://www.gov.uk/government/publications/extension-of-the-enterprise-investment-scheme-and-venture-capital-trust-scheme/enterprise-investment-scheme-and-venture-capital-trusts-scheme-extension, 22 November 2023
- HMRC Venture Capital Schemes Manual, VCM33040, https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm33040, updated 30 July 2026
- HMRC Venture Capital Schemes Manual, VCM33050, https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm33050, updated 30 July 2026
- HMRC Venture Capital Schemes Manual, VCM12060, https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm12060, updated 30 July 2026
- HMRC Venture Capital Schemes Manual, VCM34050, https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm34050, updated 30 July 2026
- HMRC Venture Capital Schemes Manual, VCM60270, https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm60270, updated 30 July 2026
