EISA: SEIS growth shows opportunity for reform as adviser interest rises 

The UK’s early-stage investment landscape is showing renewed momentum with the Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) continuing to play a pivotal role in supporting startups and scaleups. 

Recent SEIS changes, including increasing the age limit for eligible businesses from 2 to 3 years, have already had a significant impact. Investment through the SEIS increased by 51% (HMRC) and this has been keenly felt across the regions and devolved nations. The age limit on businesses able to benefit from the SEIS disproportionately affects companies outside of London and the South-East and this has been borne out by the data – there was an 80% increase in the number of businesses using the SEIS to raise investment in the North-East, whilst both Scotland and the South-West saw 40% increases. This demonstrates how targeted reforms can deliver tangible benefits across the UK. 

Education is key and many potential investors are still unaware of the opportunities the EIS and SEIS could offer. At a recent Innovate UK conference, the new Minister for Investment, Jason Stockwood, emphasised that the EIS was one of the most underrated tools. That’s one of the reasons why the EIS Association have expanded our Ready Steady Grow! roadshow to 15 events across the UK this year. These free to attend events are open to anyone interested in learning more about the schemes. 

It is important to recognise that this growth in the SEIS has come against a difficult backdrop. The early-stage investment ecosystem has faced significant headwinds in recent years, with global uncertainty and limited exits proving challenging. However, 2025 is already showing signs of change. A significant number of exits have been announced this year, providing welcome liquidity and boosting confidence across the S/EIS market. 

Changes to IHT and pensions announced in the 2024 Budget have already prompted a fresh wave of interest in both the SEIS and EIS, with more wealth managers and financial advisers exploring the schemes as part of their client strategies. A survey by IFA Magazine and Blackfinch found that 56% of IFAs said they ‘definitely did’ or ‘possibly did’ have clients now considering EIS who hadn’t before the 2024 Budget. For many advisers, SEIS and EIS are now being considered for a wider range of clients who are looking to combine growth potential with diversification and meaningful tax incentives. 

Both the EIS and SEIS have been instrumental in democratising access to early-stage investing and more than half of those investing through the schemes each year invest £10,000 or less, something many people find surprising. Those seeking portfolio diversification could consider investing a modest amount into early-stage businesses through the schemes. The generous Government EIS and SEIS tax incentives include income tax relief, no CGT, potential Inheritance Tax Relief and loss relief if a company fails. 

There is no doubt that SEIS and EIS are high risk and some failures are to be expected but the success stories speak volumes. Nearly half (46.5%) of the UK’s unicorns were once EIS investee companies, including household names like Revolut, Deliveroo, and Zoopla. These schemes are critical to supporting the growth of early stage and scaling businesses across the UK and many investee companies are now recognised across the globe. 

As the government looks to fuel growth in this Autumn’s Budget, the SEIS offers a clear case study of how targeted reforms can unlock capital and stimulate entrepreneurship nationwide. Extending that same ambition to the EIS could be transformative. By updating its limits to better reflect the needs of scaling UK businesses, the government has a major opportunity to strengthen the funding ladder, support innovation, drive economic growth and ensure that the next generation of world-class companies can start and scale in the UK. 

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.