HMRC published a tax information and impact note on 28 October 2026 setting out changes to the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) rules, affecting companies and investors who use the schemes.
According to HMRC, the changes are designed to stop firms losing all tax relief simply for exceeding an EIS investment limit. Instead, relief will remain available on the part of an investment that stays within the scheme's limits.
What is changing
HMRC said the rules will also allow SEIS investment to take place alongside EIS or VCT investment on the same day. They will stop late payment by one investor from affecting the tax relief available to other investors in the same share issue. The interest rules that apply when SEIS relief is withdrawn or reduced will be aligned with the equivalent EIS rules, and VCT rules will be amended so that any withdrawal of Income Tax relief is calculated using the rate that applied when the shares were issued.
HMRC said the changes follow a Call for Evidence on Tax Support for Entrepreneurs announced at Budget 2025, which closed in February 2026 and received 247 written responses. The government published its response at Budget 2026.
Why it matters for small firms
HMRC said the measure is intended to make the schemes simpler, more consistent and easier to operate, giving founders and investors greater certainty and reducing disproportionate outcomes caused by minor technical issues. According to HMRC, the changes are expected to affect fewer than 100 businesses and fewer than 100 individual investors per year, with a negligible impact on the Exchequer.
When the changes take effect
Most of the changes, including the EIS investment limit apportionment and same-day SEIS and EIS or VCT fundraising, will apply to shares issued, or VCT investments made, on or after 6 April 2027. The SEIS interest rule changes will also apply to shares issued from that date, with existing rules continuing for earlier shares. The amendment to VCT relief withdrawal rules will apply to disposals of shares issued on or after 6 April 2026. Legislation implementing the changes will be introduced in Finance Bill 2026-27.
Key facts - Most changes apply to shares issued or VCT investments made on or after 6 April 2027 - VCT relief withdrawal rule change applies to disposals of shares issued on or after 6 April 2026 - Call for Evidence received 247 written responses, closing in February 2026 - Expected to affect fewer than 100 businesses and fewer than 100 individual investors per year - HMRC estimates IT system changes will cost £400,000 - Legislation to be introduced in Finance Bill 2026-27
Source: HM Revenue and Customs, Changes to the Seed Enterprise Investment Scheme, Enterprise Investment Scheme and Venture Capital Trusts, published 28 October 2026 (GOV.UK, full document: GOV.UK). See also: Funding & Grants and how to send us your news.