EIS and SEIS can fund the work your R&D claim rewards.

Both are venture capital schemes that give income tax relief to investors in small unquoted trading companies. HMRC's summary shows EIS at 30% on up to 1 million pounds a year, and SEIS at 50% on up to 200,000 pounds a year. SEIS is meant for the earliest stage, with tighter company limits. EIS suits companies that have outgrown SEIS or are raising larger rounds.

From 6 April 2026, the gross assets test is 30 million pounds immediately before the share issue and 35 million pounds immediately after it, under section 186 of the Income Tax Act 2007. The employee limit is fewer than 250 full-time equivalents, rising to fewer than 500 for a knowledge-intensive company. Specified Northern Ireland companies have different figures.

Under sections 173A and 173AA of the Income Tax Act 2007, as amended from 6 April 2026, a company can receive up to 10 million pounds in a year, or 20 million for a knowledge-intensive company. The lifetime limits are 24 million pounds, or 40 million for a knowledge-intensive company. Specified Northern Ireland companies have lower limits.

Section 252A of the Income Tax Act 2007 requires an operating costs condition and either an innovation or a skilled employee condition. The cost test is that 15% of relevant operating costs go on R&D or innovation in one of the three preceding years, or 10% in each of them. The skilled employee condition needs at least 20% of full-time equivalent staff to be skilled employees.

It can. The operating costs condition looks at spending on research and development or innovation as a share of relevant operating costs. Your R&D claim records are therefore useful evidence for the test. The statutory definition is its own test, so the figures need to be prepared for that purpose rather than copied from the claim. We can help you consider how the records line up.

HMRC's SEIS guidance, last updated in May 2023, sets gross assets at no more than 350,000 pounds when the shares are issued, fewer than 25 full-time equivalent employees, and a maximum of 250,000 pounds raised under the scheme. A company already trading must not have carried on the trade for more than three years. Section 257DI confirms the 350,000 pound asset limit.

It is a request to HMRC asking whether an investment would meet the conditions of a venture capital scheme, so you can show investors it may qualify. HMRC's guidance says it covers only certain conditions, is not an endorsement, and needs a separate application for each proposed investment. We can help you consider whether to apply, and we work with your advisers on the application.

HMRC's summary says EIS and SEIS shares must generally be held for at least three years for the relief to stand. Claims can be made up to five years after the 31 January following the tax year of investment. This matters to founders because investors will ask about exit plans and conditions that could put their relief at risk.

HMRC's guidance says that if you go ahead, you must submit a compliance statement, and that changes since your application must be reported or the assurance no longer applies. Assurance covers only certain scheme conditions, based on the information you provided. We can help you consider the timetable, and we coordinate with your advisers where appropriate.

Yes, for individual investors. HMRC's summary says EIS income tax relief at 30% applies to up to 1 million pounds a year, or 2 million pounds if at least 1 million of it goes into knowledge-intensive companies. This can make your round more attractive to investors who want to invest more. Investor tax positions differ, so investors should take their own advice.