The extension to the sunset clause of the Enterprise Investment Scheme (EIS) to 2035 has now been officially confirmed by HM Treasury. The extension means the EIS relief and Venture Capital Trusts relief will apply to shares issued before 6 April 2035.
Since its launch in 1994 the EIS has been a phenomenal success and, together with the Seed Enterprise Investment Scheme (SEIS), has resulted in more than £32 billion of investment into 56,000 UK businesses.
The extension to the EIS was initially reported in November 2023, when the then government announced a 10-year extension to the EIS to April 2035. This passed through Parliament as part of the Finance Act 2024 in February.
However, a clause stating that the Treasury was required to lay the order before the law came into force meant that the scheme’s future was still not secure. Following the Treasury’s confirmation on 3 September, the extension to the EIS sunset clause is now officially confirmed.
Christiana Stewart-Lockhart, Director General of the Enterprise Investment Scheme Association (EISA), said: “We are delighted that this crucial extension has now been confirmed, providing some much-needed certainty for entrepreneurs and investors across the UK. By encouraging investment in high-risk, high-reward ventures, EIS has helped to fuel a culture of entrepreneurship and creativity in the UK. This is fantastic news and something that the EISA has been campaigning on for many years.”
Joanna Jensen, Chair of the EISA and founder of Childs Farm, said: “As a founder and investor, EIS has been a vital part of my entrepreneurial journey and I am delighted innovators across the UK will continue to benefit from the scheme. The new Labour government has been quick to emphasise the importance of ensuring the UK continues to be the best place to start a business and has highlighted their commitment to supporting start-ups to raise the capital they need to invest and grow our economy.”
