This page summarises HMRC's published guidance on all three UK venture capital tax schemes. It brings together the key reliefs, qualifying conditions, and the significant April 2026 changes in one place — with direct links to GOV.UK sources throughout.
All figures sourced from HMRC's published guidance on GOV.UK. Rates apply to UK resident individuals investing in qualifying shares issued by eligible companies.
50% relief on up to £200k (SEIS) and 30% on up to £1m (EIS). Doubled company limits from April 2026. CGT deferral, reinvestment relief, loss relief, carry-back and the advance assurance process.
SEIS 50% · EIS 30% · 3-yr holdIncome tax relief cut from 30% to 20% from 6 April 2026. Tax-free dividends and CGT exemption unchanged. 5-year minimum hold. £200k annual limit.
⚠️ Rate cut from Apr 2026SEIS, EIS, VCT, SDRT and CGT — all in one place. Five years of HMRC rates and GOV.UK references.
Ask a question about HMRC's published venture capital guidance — instant, sourced responses.
| Feature | SEIS | EIS | VCT (2026/27) |
|---|---|---|---|
| Income tax relief | 50% | 30% | 20% ↓ (was 30%) |
| Investor annual limit | £200,000 | £1m (£2m KIC) | £200,000 |
| CGT on disposal | Exempt (3yr) | Exempt (3yr) | Exempt (5yr) |
| CGT reinvestment / deferral | 50% reinvestment | Full deferral | Not available |
| Tax-free dividends | N/A | N/A | Yes |
| Min. holding period | 3 years | 3 years | 5 years |
| IHT Business Relief | Available (2yr hold) | Available (2yr hold) | Not available |
| Loss relief | Against income or CGT | Against income or CGT | Not available |
| Carry-back available | Yes — 1 prior year | Yes — 1 prior year | Yes — 1 prior year |
| Investment type | Direct — early stage | Direct — growth stage | Pooled via HMRC-approved company |
| Sunset clause | None | 6 April 2035 | 6 April 2035 |
Source: GOV.UK — Venture Capital Schemes Tax Relief & HMRC VCM Manual. Not advice — verify on GOV.UK before acting.
Two sets of changes took effect from 6 April 2026 under the Finance Act 2026. Per HMRC's published policy paper (November 2025), these were: a reduction in the VCT income tax relief rate, and a significant expansion of the company-level investment and size limits for both EIS and VCT.
Subscriptions for new VCT shares from 6 April 2026 attract 20% income tax relief — down from 30%. The rate is determined by the date of subscription, not the date of any future disposal. Subscriptions made on or before 5 April 2026 retain the 30% rate for their 5-year holding period. Tax-free dividends and CGT exemption on disposal are unchanged. See the full VCT guide.
Per HMRC's policy paper, EIS company limits doubled: annual limit to £10m (from £5m) and lifetime to £24m (from £12m). KIC limits: annual to £20m and lifetime to £40m. Gross assets test to £30m before / £35m after issue (from £15m/£16m). These apply to shares issued on or after 6 April 2026. Investor annual limits are unchanged. See the full SEIS & EIS guide.
The VCT rate reduction, EIS company limit changes and IHT Business Relief cap all have meaningful financial implications. This page sets out HMRC's published guidance. A qualified adviser can assess how these changes apply to your situation.
Matching service only. UK Tax Hero does not provide regulated financial or tax advice.
EIS and SEIS shares in qualifying companies may attract Business Relief (BR) for Inheritance Tax purposes. Per HMRC's published guidance on GOV.UK, Business Relief provides relief from IHT on shares in qualifying trading companies after a 2-year holding period. From 6 April 2026, a significant structural change was introduced.
Before 6 April 2026: Business Relief provided 100% IHT relief on qualifying shares with no cap. From 6 April 2026: the first £2.5 million per individual of qualifying business and agricultural assets receives 100% IHT relief (0% effective rate). Assets above £2.5m receive 50% relief — an effective IHT rate of 20%. The cap applies to the combined total of Business Relief and Agricultural Property Relief assets. It is transferable between spouses and civil partners, so a married couple can shelter up to £5m combined. VCT shares do not qualify for Business Relief. See GOV.UK: Business Relief for Inheritance Tax.
| Period | BR on first £2.5m | BR on excess | Effective IHT rate on excess |
|---|---|---|---|
| 2022/23 – 2025/26 (to 5 Apr 2026) | 100% — no cap | 100% — no cap | 0% (no cap applied) |
| 2026/27 (from 6 Apr 2026) | 100% | 50% only | 20% effective rate |
Source: GOV.UK — Business Relief for Inheritance Tax. VCT shares do not qualify. IHT planning is complex — always seek qualified advice.
One of the most important and frequently misunderstood rules in the venture capital scheme framework is the SEIS sequencing requirement. Per HMRC's Venture Capital Schemes Manual (VCM30000), a company can only use SEIS if it has not already received investment under EIS or through a VCT.
Per HMRC's guidance, once a company has accepted EIS or VCT investment, it cannot go back and use SEIS. The sequencing is permanent and cannot be corrected after the fact. Companies planning to raise under SEIS should complete their SEIS round and, where relevant, obtain HMRC advance assurance before accepting any EIS or VCT investment. A reversal of order — even inadvertent — disqualifies SEIS eligibility entirely for that company. See HMRC VCM30000.
No sign-up required. All results are estimates based on HMRC's published rates. They are not personalised calculations or tax advice. Always verify on GOV.UK and consult a qualified professional before investing.
This page summarises HMRC's published guidance. Venture capital schemes involve complex rules and significant investment risk. A qualified tax and financial adviser can assess how each scheme applies to your circumstances.
Matching service only. UK Tax Hero does not provide regulated advice.
Answers summarise HMRC's published guidance with direct GOV.UK links. This is informational guidance only. Consult a qualified professional for advice specific to your circumstances.
This page summarises HMRC's published rules only. Our free matching service connects you with verified UK tax specialists.
Important — informational guidance only. This is not tax, financial or investment advice. UK Tax Hero summarises HMRC's published guidance as a free information and expert-matching service. Nothing on this page constitutes personal tax advice, financial advice, investment advice or legal advice. Venture capital investments are high risk — the value of shares can fall to zero. Tax rules change and reliefs are subject to conditions, qualifying requirements and potential clawback. Always verify all figures directly on GOV.UK and seek advice from both a qualified tax professional and a regulated financial adviser before investing in any venture capital scheme. UK Tax Hero is not regulated by HMRC, the FCA or any professional body and does not provide regulated advice of any kind.
