Straight answer

EIS advance assurance explained: the 2026 rules and limits

What is EIS advance assurance and how does it work in 2026?

EIS advance assurance is HMRC's opinion, given before you issue shares, that your company is likely to qualify for the Enterprise Investment Scheme. Many investors ask for it before they commit. From 6 April 2026 most companies can raise up to £10 million a year and £24 million in total through the schemes.

Last reviewed 11 September 2026. Written by Steph Hamill, HAM Agency.

The EIS company limits from 6 April 2026

The limits count money raised through EIS, venture capital trusts, SEIS and Social Investment Tax Relief together.

Limit	Before 6 April 2026	From 6 April 2026
Annual limit, most companies	£5 million	£10 million
Annual limit, knowledge-intensive companies	£10 million	£20 million
Lifetime limit, most companies	£12 million	£24 million
Lifetime limit, knowledge-intensive companies	£20 million	£40 million
Gross assets immediately before the issue	£15 million	£30 million
Gross assets immediately after the issue	£16 million	£35 million

The increases do not apply to companies registered in Northern Ireland that trade in goods or in electricity generation, supply or trading. Those keep the earlier limits.

The other company rules

Rule	What GOV.UK says
Staff	Fewer than 250 full-time equivalent employees when the shares are issued. Knowledge-intensive companies: fewer than 500
Age	Within 7 years of the first commercial sale. Knowledge-intensive companies: 10 years, or from the year turnover reached £200,000
Independence	Not controlled by another company, and not more than 50% owned by another company
Listing	Not trading on a recognised stock exchange at the time of the issue
Risk to capital	The company must aim to grow and develop its trade long term, and the investment must be a genuine risk to the investor's capital
Spending the money	On a qualifying business activity, within 2 years of the investment or of starting to trade if later; not to buy another business

What your investors get

Relief	EIS
Income tax relief	30%
Maximum per investor per tax year	£1 million, or £2 million if anything above £1 million goes into knowledge-intensive companies
Minimum holding period	3 years
Carry back	Can be claimed against the previous tax year
Capital gains	Exemption on EIS shares where income tax relief was claimed; deferral relief on gains reinvested
Losses	Loss relief against income
Connected persons	No relief if the investor and associates hold more than 30%; paid directors are generally excluded unless the payments are permitted

How advance assurance works

Agree the deal. Know the amount and the terms before you apply.
Build the pack. Business plan, financial forecasts, latest accounts if you have them, memorandum and articles, register of members, and every document investors will see.
Make the risk to capital case. Show how the business will grow and why investors' money is genuinely at risk. This is where weak applications fail.
Apply online. First-time applicants give details of prospective investors.
HMRC replies. An assurance, a rejection or a request for more information.
Issue the shares. Stick to what you described.
File the EIS1 compliance statement once the qualifying activity has run for 4 months, and within 2 years of that date or of the end of the tax year of issue, whichever is later.
Investors claim using the EIS3 certificate HMRC authorises you to issue.

Before you press submit

The raise is within the annual and lifetime limits, counting any earlier SEIS, EIS or VCT money
Gross assets are under the test before and after the issue
No company controls yours or owns more than half of it
Your trade qualifies; check the excluded activities in HMRC's manual if you are anywhere near energy, property, finance or land
The use of money is specific and ties to the forecasts
Share rights carry no preference that breaks the rules
If you claim knowledge-intensive status, you have the evidence ready
Directors have verified their identity with Companies House

How HAM helps

HAM prepares EIS rounds through Capital: the assurance pack, the model, the data room and the investor story, run to a timetable. To see where to start, take the discovery quiz.

Questions

Did the EIS limits change in 2026?

Yes. From 6 April 2026 the annual company limit rose to £10 million (£20 million for knowledge-intensive companies), the lifetime limit to £24 million (£40 million), and the gross assets test to £30 million before and £35 million after the issue.

Did EIS income tax relief fall to 20%?

No. The cut to 20% applies to venture capital trusts. EIS income tax relief stays at 30%.

Should I do SEIS before EIS?

If you qualify for both, yes. GOV.UK says you cannot use SEIS once you have received EIS or venture capital trust investment.

Is advance assurance binding?

It is HMRC's opinion on the facts you gave, and GOV.UK says it should not be read as a general endorsement. It may not hold if the facts or the deal change.

Sources

Practices

Practice
Capital

For anyone bringing money in or putting it to work: a raise, a grant, a bid.