Accountant For A Limited Company

How to Apply for EIS: UK Eligibility and Process

To apply for EIS (Enterprise Investment Scheme), submit form EIS1 to HMRC for advance assurance before raising investment. Your company must be a UK trading company less than seven years old (or twelve years for knowledge-intensive companies), with fewer than 250 employees and gross assets under £15 million. Qualifying investors receive 30% income tax relief on investments up to £1 million per tax year, and gains on EIS shares held for at least three years are exempt from Capital Gains Tax.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 1

Key takeaways

EIS gives qualifying investors 30% income tax relief on investments up to £1 million per tax year (£2 million if at least £1 million is in knowledge-intensive companies).
Your company must be a UK trading company, less than 7 years old (12 for knowledge-intensive), with fewer than 250 employees and gross assets under £15 million before the investment.
Apply for advance assurance by submitting form EIS1 to HMRC; this confirms your company qualifies and gives investors confidence before they commit funds.
After receiving investment, submit a compliance statement (form EIS2) to HMRC so investors can claim their tax relief certificates (EIS3 forms).
A company can raise up to £5 million through EIS in any 12-month period, and up to £12 million over its lifetime (combined EIS, SEIS, and VCT investment).

Application process for the Enterprise Investment Scheme (EIS):

To apply for the Enterprise Investment Scheme (EIS), you need to:

Obtain the application form from HMRC. You need to request for the form in Welsh.
If you’ve received advance assurance, you need to show copies of documents that have changed since you received advance assurance from HMRC.
If you haven’t received advance assurance, you need to provide the following information about your company and any subsidiaries:
Business plan and financial forecasts
Latest accounts or bank statements
An explanation of how you meet the risk to capital condition
Information on all trading and activities to be carried out, and how much you expect to spend on each activity

Preparing your memorandum and articles of association:

An up-to-date copy of the memorandum and articles of association

The information memorandum, prospectus or other document used to explain the fundraising proposal to your investors
Information of any other agreements between your company and the shareholder
A list of the amounts, dates and venture capital schemes under which you’ve previously received investment
Any other documents to show you meet the qualifying conditions
If you’re applying as a knowledge intensive company, you need to provide evidence of how you qualify as one.

Frequently asked questions

What is EIS and how does it work?

The Enterprise Investment Scheme is a UK government scheme that gives tax relief to individual investors who buy new shares in qualifying companies. Investors receive 30% income tax relief on investments up to £1 million per tax year. The company must be a qualifying UK trading company. EIS encourages private investment into growing businesses by reducing the financial risk for investors.

How do I apply for EIS advance assurance?

Submit form EIS1 to HMRC with details of your company, its trade, financial history, and the proposed share issue. HMRC reviews the application and confirms whether your company meets the qualifying criteria. Advance assurance typically takes 4 to 6 weeks. It is not mandatory but is strongly recommended because investors will want confirmation before committing funds.

What are the EIS eligibility criteria?

The company must be a UK trading company less than 7 years old (12 years for knowledge-intensive companies), with fewer than 250 full-time equivalent employees and gross assets under £15 million before the investment. The company must not be listed on a recognised stock exchange and must not be controlled by another company. The funds raised must be used for a qualifying trade within 2 years.

How much can a company raise through EIS?

A company can raise up to £5 million through EIS in any 12-month rolling period. The lifetime maximum from all venture capital schemes combined (EIS, SEIS, and VCT) is £12 million. Knowledge-intensive companies can raise up to £10 million in a 12-month period with a higher lifetime limit of £20 million.

What is the difference between EIS and SEIS?

SEIS is for very early-stage companies (under 3 years, under 25 employees, under £350,000 gross assets) and offers 50% income tax relief on up to £200,000. EIS is for slightly more established companies (under 7 years, under 250 employees, under £15 million gross assets) and offers 30% income tax relief on up to £1 million. Companies typically raise SEIS first, then move to EIS as they grow.

What tax relief do EIS investors receive?

Investors receive 30% income tax relief on investments up to £1 million per tax year. Gains on EIS shares held for at least 3 years are exempt from Capital Gains Tax. Losses can be offset against income tax. There is also CGT deferral relief: gains from other assets invested into EIS shares can be deferred until the EIS shares are disposed of.