In this exclusive interview with Tax-Efficient Investment (TEI) Magazine, Christiana Stewart-Lockhart, Director General of the EIS Association, joins us to share her insights on the new tax year so far.
Christiana outlines some of the key changes she’s seen in the 2026-27 tax year, before assessing how the ongoing geopolitical tensions are impacting (S)EIS investing. She also dives deeper into the factors affecting tax-efficient investments beyond geopolitics, including changes to IHT.
She concludes by giving her projections for the remainder of the tax year, before sharing some useful advice for advisers amid all the uncertainty.
Early signs in the new tax year
Christiana notes that the start of 2026/27 has brought some significant scheme-level changes, with the increases to EIS and VCT investment limits, announced in the Budget, being front and centre. “These increases, which came into effect from April, are designed to address the scaleup gap,” she says. “This enables EIS to support companies for longer in their growth journey and back businesses at a stage where patient capital has historically been harder to secure.”
This is accompanied by changes to VCT income tax relief, along with the well-documented shifts to pension IHT treatment. “These changes have prompted advisers to take a fresh look at the full range of tax-efficient investment options available to their clients”, Christiana advises. “EIS and SEIS are increasingly featuring in those conversations, and we are seeing growing interest from both first-time investors and advisers considering the schemes for a broader range of clients.”
How geopolitical tensions impact tax-efficient investing
The escalation of tensions towards the end of the tax year, including the conflict in the Middle East, has prompted many to take a more cautious approach to deploying capital. “That is understandable,” she says, “but periods of disruption have historically created fertile ground for innovative new businesses, as established industries are forced to adapt and new solutions emerge.”
Christiana reveals that typical EIS-backed companies are often best positioned to capitalise on disruption caused by geopolitical uncertainty, adding that the wider geopolitical climate also appears to be reinforcing the UK’s attractiveness for entrepreneurial talent and capital. “Its relative stability and deep innovation ecosystem are continuing to draw top founders from across the world,” she added.
The effect of IHT changes
On the topic of additional factors which are impacting tax-efficient investments, Christiana explains that the changes to pension IHT treatment have prompted advisers to think more broadly about portfolio construction. “EIS is increasingly featuring in those conversations,” she points out.
Fiscal drag is also expanding the number of people paying higher rates of income tax. Christiana states that EIS is still being overlooked somewhat among high earners, with the number of UK workers earning six-figure salaries expected to exceed two million for the first time. “Despite these figures, only around 40,000 people are currently investing through EIS,” Christiana adds. “For advisers, that represents a real opportunity to ensure eligible clients are not missing out on a government-backed scheme designed to support investment in innovative UK businesses.”
Projections for 2026-27 tax year
Christiana expects to see the demand for EIS and SEIS grow, driven by increasing adviser familiarity with the asset class and a broader range of clients being introduced to the schemes. “We are already seeing stronger engagement from first-time investors,” she adds. “That trend should accelerate as awareness grows.”
The UK’s early-stage innovation pipeline remains strong, with a 23.6% increase in first-time deals in 2025 year on year. Christiana notes that cities such as Edinburgh and Manchester have developed strong and mature innovation ecosystems, adding, “beyond those established hubs, we are seeing early-stage businesses emerge and thrive in an increasingly wide range of locations.” This speaks to the depth of entrepreneurial talent across the country.
Advice for advisers amid uncertainty
For advisers, Christiana’s first piece of advice is to “start with the investment, not the tax relief.” EIS offers access to a distinctive and dynamic part of the UK economy, and it can play a valuable role in a diversified portfolio. “The tax reliefs are significant, but they are most powerful when they are reinforcing investment decisions based on the opportunity of the underlying companies”, she explains.
She refers to some of the UK’s most recognisable success stories, including Revolut and Zoopla, who received EIS backing in their early stages. “46.5% of UK unicorns have benefited from the scheme,” Christiana adds, “yet only around 40,000 people currently invest through EIS.”
The opportunity to participate in the next generation of those businesses is there, but a high number of investors are unaware that the opportunity exists. Raising awareness of EIS among eligible clients will ensure they are not missing out on a government-backed scheme specifically designed to support their investment in innovative UK businesses.
“Ultimately, the EIS and SEIS give investors the opportunity to back British businesses tackling some of the most significant challenges of our time,” Christiana concludes. “This ranges from cancer research to climate change, while participating in the potential returns that come with supporting the innovators who will drive the UK’s growth for years to come.”
This interview featured in the latest issue of Tax-Efficient Investment (TEI) Magazine, titled, ‘Reform, risk and opportunity: the new tax-efficient investment landscape‘.
About Christiana Stewart-Lockhart
Christiana is Director General of the EIS Association, the trade body for the Enterprise Investment Scheme (EIS) and the Seed EIS ecosystem. The EIS and SEIS are government schemes that have resulted in £34billion of private investment into 60,000 UK growth businesses. The EIS Association 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 in the 2025 Women in Trade Associations powerlist, is a member of TISA’s Financial Education Council, and sits on the Advisory Board for the APPG for Entrepreneurship.
