TYE 2025: EISA’s Christiana Stewart-Lockhart on unlocking the power of EIS and SEIS for clients

Our exclusive interview with EISA’s Christiana Stewart-Lockhart acts as a stark reminder as to how advisers can maximise tax efficiency for clients ahead of the tax year-end.

With the tax year-end just around the corner, advisers are looking for smart ways to reduce their clients’ tax liabilities – both for this tax year and next. In this insightful conversation with our Content Editor, Matt Williams, Christiana Stewart-Lockhart, Director General of the Enterprise Investment Scheme Association (EISA), shares expert strategies for maximising tax efficiency through EIS and SEIS investing.

As she explains, these are powerful tools that not only deliver generous tax reliefs as well as the prospect for long term investment returns but they also support the UK’s vibrant early-stage business ecosystem.

In the following Q&A which featured in our special 50th issue of GBI Magazine, Christiana outlines practical strategies for minimising tax burdens, highlights some of the most valuable tax-saving opportunities and explains the impact of recent changes to CGT on tax-efficient investments.

GBI: What are some of the more effective strategies that you think advisers can use to minimise their clients’ tax liabilities before the end of the tax year?

Christiana: The EIS and SEIS are some of the most powerful Government initiatives to encourage investment in early-stage businesses. These schemes are world leading and are a significant reason why many talented entrepreneurs from across the world chose to base their businesses in the UK.

These are high risk, high reward investments but the generous tax incentives included in the schemes make them very important tools for investors. Through the schemes, investors can receive tax reliefs on their investments in eligible companies, including 30% income tax relief and capital gains tax (CGT) freedom, making it an attractive option for individuals looking to support early-stage businesses. Each year more than £2 billion is invested through the schemes and the EIS has been crucial in supporting early stage investment for more than 30 years.

GBI: Which tax-saving opportunities should advisers be considering before the tax year closes – and why?

Christiana: Early-stage investing is high risk and the EIS and SEIS offer a generous combination of tax reliefs to incentivise more investment in this area. Investment through these government schemes is focused on driving growth in innovative startups and scaleups across the UK. These investments are typically also illiquid however, under the EIS, investors can benefit from significant tax reliefs including 30% income tax relief, no CGT on the investment, and loss relief is available if the company fails. Under the SEIS, investors can benefit from 50% income tax relief, no CGT on the investment, and again, loss relief is available if the business fails. Under the SEIS, you could also reduce your CGT on gains made elsewhere by up to 50%.

These are crucial government schemes which have facilitated £32billion of investment into 56,000 businesses over the last 30 years. These include many household names such as Revolut, Zoopla and Deliveroo and according to Beauhurst, 46.5% of UK unicorns since 2013 have received EIS investment.

However, there are many potential investors who are missing out, largely due to a lack of awareness about the schemes. One common misconception is that the EIS and SEIS are only for those investing very large sums. And, whilst there are a significant number of very large investors, it is important to recognise that HMRC data shows that the majority of those using the EIS invest up to £10,000 each year, making it an accessible tool for a wider range of investors interested in supporting innovative startups. The EIS has helped to democratise access to early stage investing and has helped to ensure that more people are able to invest in high growth businesses addressing some of the greatest challenges we face.

GBI: In what way(s) do you think that the changes to CGT and IHT have impacted tax efficient investments?

Christiana: Since the Autumn Budget, we have seen renewed interest in the EIS and SEIS, driven in part by changes to CGT and IHT. More investors are now exploring the S/EIS as part of a diversified portfolio and a recent survey by IFA magazine found that 56% of IFAs had clients who were now considering investing through the EIS who hadn’t before the Budget.

Not only are capital gains free from tax under the EIS, but investors can also defer CGT from other gains by reinvesting them through the scheme. EIS shares can also qualify for up to 100% business relief after two years of ownership. With the SEIS there is also a 50% CGT reinvestment relief for investors. Recent changes to CGT and IHT have made the S/EIS increasingly important tools for investors looking to support early-stage businesses whilst also investing in a tax efficient way.

Time for action

With the tax year-end fast approaching, now is a critical time for financial advisers to guide clients toward tax-efficient solutions. The EIS and SEIS offer compelling opportunities to help clients reduce their tax liabilities while investing in high-potential early-stage businesses that offer real long term growth potential.

By highlighting the income tax relief, CGT exemptions, and loss relief available through these schemes, advisers can demonstrate significant value and encourage clients to build more diversified, tax-optimised portfolios. As changes to CGT and IHT drive increased interest in tax-efficient investments, advisers play a pivotal role in ensuring clients fully understand and leverage these powerful government-backed initiatives.

A big thank you to Christiana Stewart-Lockhart for sharing her expertise with her on this occasion. We hope her insights empower you to help your clients make the most of the opportunities available as the tax year-end approaches – and into the new tax year too.  It really is the time for action!

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, is a member of TISA’s Financial Education Council, and sits on the Advisory Board for the APPG for Entrepreneurship.