In this exclusive interview with Tax-Efficient Investment (TEI) Magazine, Christiana Stewart-Lockhart, Director General of the EIS Association (EISA), joins us to share her expert insights on EIS and SEIS.
She reflects on how the 2025-26 tax year went for EIS and SEIS, along with the effects of the recent Budget. She also looks ahead to the new tax year, outlining what investors and advisers need to be thinking about in the coming weeks, and what she expects to happen in 2026 and beyond.
TEI: How did the 2025-26 tax year go for EIS/SEIS?
CSL: The 2025-26 tax year delivered a mixed but encouraging picture for the UK’s tax-advantaged investment schemes. We have not seen the record-breaking highs of the covid years, likely due to ongoing macroeconomic uncertainty and the impact of a late Budget, however 2026 has got off to a great start, with renewed momentum, more interest from first-time EIS investors, as well as IFAs considering EIS for a wider range of clients. The increasing importance of the EIS, particularly given changes to pensions and IHT, has been recognised by a wider number of investors and the Government has been keen to emphasise its crucial role in supporting UK growth.
We saw an increase in exits in 2025 which has improved sentiment. At the same time, investment through the SEIS significantly increased, building on the increased limits introduced in April 2023 and attracting both new capital and a broader investor base. This underscores how targeted policy reform can materially broaden access to investment at the earliest stages of the growth journey.
The quality of companies coming through remains high and the UK is a world leader when it comes to talent and innovation. Recent data from Beauhurst’s The Deal highlights continued strength with the number of first-time deals in 2025 increasing by 23.6% year on year, and the amount raised into UK companies in 2025 increasing by 3.34% compared to last year.
TEI: With the tax year-end approaching, what should investors be prioritising in the final weeks to avoid missing valuable reliefs?
CSL: As the tax year-end approaches, focus on preparation and understanding the practicalities of how EIS and SEIS investments work is key. For those considering investing through the EIS or SEIS, the EIS Association has a range of resources available on our website, and we also regularly run free webinars for investors and advisers looking to build their understanding of the schemes.
From a practical perspective, it is helpful for investors to engage early with fund managers to understand deployment timelines, as well as the administrative differences between EIS funds and Knowledge Intensive EIS funds. It is also important to ask questions about the underlying investee companies, ensuring there is a clear understanding of the strategy, sectors and stages being supported.
Finally, it’s important for financial advisers to understand how the available tax reliefs operate in practice, including the use of carry-back, and how these interact with clients’ wider investment positions. Early conversations can help ensure that clients are able to benefit from diversifying investment to early stage UK businesses whilst ensuring they are able to utilise the relevant tax reliefs available.
TEI: Looking back at the Budget, how much change have you seen over the last few months?
CSL: It was fantastic to see the Government announce increases to the EIS and VCT limits in the 2025 Budget. This will crucially enable the schemes to better support scaling businesses across the UK and will be particularly important for deep tech and life sciences scale ups.
On the investor side, we’re starting to see a significant shift in behaviour. Advisers are increasingly discussing EIS with a broader range of clients, and new investors are considering the EIS and SEIS as part of a diversified portfolio. This is particularly noticeable when considering the recent policy announcements affecting pensions, IHT and VCTs. There continues to be a strong emphasis on backing high-quality, innovation-led companies, reflecting the depth of opportunity in the UK’s growth ecosystem.
According to Financial Times, the number of UK workers expected to earn six-figure salaries is set to exceed 2 million for the first time this year, illustrating how fiscal drag and income growth are potentially influencing investment behaviour.
TEI: What changes to the investing landscape do you foresee in the new tax year?
CSL: Looking ahead to 2026/27, the EIS and SEIS are likely to continue democratising access to early stage investing, with the schemes being considered for a wider range of clients. Geopolitical uncertainty affecting markets more broadly also means that this asset class is likely to be an important tool for diversification. I expect (and we are already seeing) stronger engagement from both new investors and advisers, as awareness of the schemes continues to grow. Investors are also taking a more active interest in the underlying companies they support, ensuring they understand the sectors and stages being backed.
We also anticipate continued regional diversification, with capital reaching innovative businesses outside traditional ‘Golden Triangle’ hubs. Exits remain an important driver of confidence, demonstrating the potential returns these schemes can deliver over the longer term.
With the number of UK workers earning six-figure salaries expected to exceed 2 million for the first time, we may see an expanding pool of EIS and SEIS investors, particularly as many fund managers are now offering lower minimums and advisers are considering these government schemes for a wider range of clients. Overall, there is a renewed sense of optimism across the ecosystem as interest in supporting innovative UK businesses, whilst benefitting from significant tax reliefs, continues to grow.
Conclusion
EIS and SEIS remain crucial for supporting innovative UK businesses and helping investors navigate an everchanging environment. While the 2025–26 tax year brought its share of challenges, there is definite confidence in the market.
Looking ahead, EIS and SEIS appear well positioned to play an even broader role in diversified portfolios, especially with awareness growing, and investor behaviour continuing to shift. EIS and SEIS look set to remain vital tools for driving long-term growth well beyond the next tax year.
This piece featured in the latest issue of Tax-Efficient Investment (TEI) Magazine, which you can read here!
About Christiana Stewart-Lockhart
Christiana is Director General of the EIS Association (EISA), the trade body for the Enterprise Investment Scheme (EIS) and the Seed EIS ecosystem. EISA has more than 400 members, including entrepreneurs, advisers and investors using the schemes. Christiana previously spent more than a decade working in Westminster and holds a BA in Politics from the University of York.
She was included on the 2025 Women in Trade Associations Powerlist and is a member of TISA’s Financial Education Council. She also sits on the Advisory Board for the APPG for Entrepreneurship.
