If you’re building a SaaS company in the UK and thinking about your first (or next) funding round, there’s a genuinely useful change worth knowing about: the Enterprise Investment Scheme (EIS) fundraising limits doubled from 6 April 2026. That’s not a minor tweak — it changes how much runway a single scheme can realistically cover.
What EIS actually is, in plain terms
EIS is a UK government scheme that gives individual investors significant tax relief for investing in early-stage, higher-risk companies — including a large slice of UK SaaS startups. It exists because investing in an unproven company is genuinely risky, so the government offsets some of that risk through tax relief, which in turn makes it easier for founders like you to raise money from individual (“angel”) investors rather than relying purely on institutional VCs.
Its close relative, SEIS (Seed EIS), works the same way but is aimed at even earlier-stage companies raising smaller amounts.
What actually changed from April 2026
– Annual company raise limit under EIS: doubled to £10 million a year.
– Lifetime company raise limit under EIS: doubled to £24 million.
For comparison, SEIS — the earlier-stage scheme most relevant to a company in its first three years — still caps the company’s lifetime raise at £250,000, with individual investors able to put in up to £200,000 a year and claim 50% income tax relief on it (up to £100,000 of relief per investor per year). SEIS wasn’t part of this particular increase, so the practical read is: SEIS is still your earliest-stage tool, and the bigger EIS ceiling is what matters once you’re past that first small round and building toward something more substantial.
Why this matters for a SaaS founder specifically
SaaS businesses often need more runway than a single seed round provides before they hit meaningful recurring revenue — you’re paying for engineering, infrastructure, and customer acquisition well before the unit economics prove themselves out. A scheme that can now support up to £10 million in a single year, and £24 million across the company’s life, means EIS-eligible fundraising can realistically now cover multiple growth-stage rounds without the company ageing out of scheme eligibility as quickly as it might have under the old limits.
It also matters for how you talk to investors. Being able to say “this round, and likely our next one, both qualify for EIS relief” is a genuinely different pitch than “this scheme is basically maxed out already” — and for many angel investors, EIS eligibility is a real factor in the size of the cheque they’re willing to write.
What to actually check before you rely on this
EIS eligibility isn’t automatic just because your company is small and UK-based. A few of the standard conditions worth checking early, ideally before you set your round size:
– Your company structure and share classes need to meet EIS’s specific rules — this is one of the areas where getting early advice pays for itself, because a structure set up wrong from day one can be expensive to unwind later.
– Certain trades and business models are excluded from EIS eligibility entirely — it’s worth confirming your specific business model qualifies rather than assuming it does.
– Advance Assurance from HMRC — a pre-approval that your proposed investment should qualify — is something most serious investors will expect you to have obtained before they commit, not something to leave until after money has changed hands.
A practical checklist before your next round
- Confirm whether SEIS, EIS, or a mix of both fits your company’s stage and this round’s size.
- Check your share structure is EIS/SEIS-compatible before agreeing terms with any investor.
- Apply for HMRC Advance Assurance early — this can take weeks, and investors will often wait for it.
- Keep your company’s PSC (Persons with Significant Control) register and Companies House filings accurate and current — messy cap table records are a common, avoidable source of delay when investors or HMRC review a scheme application.
- Get your structure reviewed by a professional who works specifically with EIS/SEIS-eligible companies before you finalise round terms.
Frequently asked questions
Does my SaaS company automatically qualify for EIS just because it’s small?
No. EIS has specific trade, structure, and company-age requirements. Being small and UK-registered is necessary but not sufficient — this is genuinely worth checking with a professional before you build a round around the assumption.
Can I use SEIS and EIS for the same company at different stages?
Yes, this is common — SEIS for the earliest, smallest round, then EIS as the company and its raises grow, provided the company still meets EIS’s own conditions at that later stage.
Do investors get the tax relief, or does the company?
The relief goes to the individual investor, not the company. It’s a mechanism for making your company a more attractive investment, not a subsidy paid to you directly.
Is Advance Assurance a guarantee my company qualifies?
It’s a strong indication HMRC expects your proposed investment to qualify, based on what you’ve told them — but it isn’t an unconditional guarantee, and the final position is confirmed after the investment is made and reported. This is not tax advice; the specifics depend on your situation.
Does this change affect companies incorporated outside the UK?
EIS and SEIS relief require the company to be a genuine UK-based trading company meeting HMRC’s conditions — this is a UK company scheme, not something that extends to a foreign entity with a UK subsidiary in every circumstance. Structure matters here, which is exactly the kind of thing worth getting right from incorporation onward.
Where Launchese fits in
Getting your company structure right before you’re mid-negotiation with an investor is far easier than fixing it afterward. Launchese helps SaaS founders set up a UK company structure that’s actually built with investment in mind from day one — clean share classes, an accurate PSC register, and the groundwork that makes an EIS or SEIS application straightforward rather than a scramble.
If you’re planning a raise and want to know whether your current structure is ready for it, book your free 15-minute advisory call today and we’ll walk through it together.
Trusted by 10,000+ founders from 100+ countries
Join 10,000+ founders from 100+ countries.
Launchese has helped entrepreneurs worldwide form a UK company and get payment-ready, without UK residency.
Get started with Launchese →
