SEIS and EIS: What Every UK Founder Needs to Know in 2026
SEIS and EIS are the backbone of early-stage funding in the UK. For most angels and early-stage funds, eligibility is not a bonus — it is a baseline requirement.
The Finance Act 2026 doubled the EIS limits from April 2026, significantly expanding how much later-stage companies can raise under the scheme.
If you are raising from UK angels and you do not know your SEIS or EIS status, sort that first.
SEIS and EIS are not tax technicalities to hand off to an accountant after the round closes. They shape who will invest in you, how much they can put in, and what your pitch needs to address before you walk into a meeting.
Jay Dickieson, Founder and Managing Director of PitchBuilder, has built and reviewed pitch decks for 500+ UK founders across more than £700m in funding rounds. In this article, he outlines the current state of SEIS and EIS, and what founders need to know:
What SEIS and EIS actually are
SEIS — Seed Enterprise Investment Scheme is for the earliest-stage companies. It offers investors 50% income tax relief on investments up to £200,000 per year. If an investor puts in £100,000 under SEIS, they can reclaim £50,000 from HMRC — effectively halving their downside before the company has done anything. There is also capital gains tax exemption on any profit if shares are held for at least three years, and loss relief if the company fails.
EIS — Enterprise Investment Scheme applies to slightly larger and more developed companies. It offers 30% income tax relief, with investors able to invest up to £1,000,000 per year (or £2,000,000 if investing in knowledge-intensive companies). Like SEIS, it comes with CGT exemption and loss relief.
The 50% relief under SEIS is extraordinary by any measure. It changes the maths of early-stage investing in a way that has created an entire ecosystem of angels, syndicates, and funds built specifically around SEIS and EIS eligibility.
What changed in April 2026
The Finance Act 2026 made significant changes to EIS. These came into effect in April 2026 and represent the most substantial expansion of the scheme in years. Most of what is online still reflects the old limits.
| Limit | Before April 2026 | From April 2026 |
|---|---|---|
| EIS annual investment limit (per company) | £5m | £10m |
| EIS lifetime investment limit (per company) | £12m | £24m |
| Gross asset threshold | £15m | £30m |
| Employee limit | 250 | 500 |
| SEIS limits | Unchanged | Unchanged |
Source: Finance Act 2026. Verify current limits with HMRC or a qualified tax adviser before relying on these figures.
SEIS and EIS in your pitch deck: what founders get wrong
Most founders who know about SEIS and EIS treat it as a selling point in their pitch deck. A line on the cover slide: "SEIS eligible." Sometimes a whole paragraph about the tax benefits available to investors.
This is the wrong frame.
For UK angels, and for SEIS and EIS funds specifically, eligibility is not a bonus. It is an expectation. When a founder pitches an angel who invests primarily through SEIS, the assumption is that the company qualifies. Highlighting it as an advantage is a bit like putting "has a product" on the cover slide.
What the pitch deck should do is confirm eligibility clearly — in the ask slide or a brief note on the financials — and move on.
What happens if you are not eligible
Non-eligibility narrows the pool, but does not close it.
Some investors — particularly SEIS-only funds and angel syndicates built specifically around the scheme — will not invest in non-qualifying companies. That is a structural constraint, not a judgement on the business.
For most angels, a genuinely strong opportunity matters more than the tax wrapper.
The scenarios where non-eligibility most commonly comes up:
- the company has already used its SEIS allowance;
- the company is too large for SEIS or EIS (though post-April 2026, the EIS thresholds are significantly higher); or
- the business structure does not qualify — certain sectors including property development, financial services, and energy generation are excluded.
Confirm eligibility before you start pitching
SEIS and EIS advance assurance — a letter from HMRC confirming that the company is likely to qualify — is worth obtaining before you begin approaching investors. It gives investors confidence and removes a potential friction point from the conversation.
Founders who discover mid-round that they do not qualify waste time and damage trust. Our partners at SeedLegals are the experts here. Drop us a line and we're happy to introduce you.
PitchBuilder works with SEIS-eligible founders at pre-seed and seed stage, both on pitch deck reviews and building pitch decks from scratch. Because we are a SeedLegals partner our clients can cross-reference SEIS eligibility directly.
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Frequently asked questions
What is SEIS and how does it help UK founders raise money?
SEIS gives investors 50% income tax relief on investments up to £200,000 per year in qualifying early-stage UK companies. That relief effectively halves an investor's downside before the company has done anything, which makes early-stage investing considerably more attractive. For founders, SEIS eligibility opens the door to a large pool of angels and funds built specifically around the scheme.
What changed with EIS in April 2026?
The Finance Act 2026 doubled the main EIS limits from April 2026. The annual investment limit per company rose from £5m to £10m, the lifetime limit from £12m to £24m, the gross asset threshold from £15m to £30m, and the employee limit from 250 to 500. SEIS limits were not changed.
Should I mention SEIS or EIS eligibility in my pitch deck?
Yes — briefly. One line on the ask slide confirming eligibility is sufficient. UK angels assume SEIS or EIS eligibility when approaching early-stage companies. Do not dedicate a slide to it or frame it as a unique advantage — experienced angels will find that odd.
What happens if my company is not SEIS or EIS eligible?
It narrows the investor pool but does not close it. SEIS-only funds and syndicates will not be able to invest. Most individual angels will back a genuinely strong opportunity regardless of tax wrapper. Be transparent about it with investors, and focus your outreach on investors who are not structurally constrained by SEIS or EIS requirements.
How do I confirm my SEIS or EIS eligibility before pitching?
Apply for advance assurance from HMRC — a letter confirming the company is likely to qualify when shares are issued. A good accountant or tax adviser can handle the application quickly. Do not start pitching UK angels before you know your status.
Can a company be both SEIS and EIS eligible?
Yes, at different stages. A company typically starts under SEIS, raising its earliest capital until the SEIS limits are reached, and then moves to EIS for subsequent rounds. The two schemes are sequential rather than simultaneous for most companies.