For most early-stage UK raises, the SEIS and EIS schemes are the single biggest lever a founder has, and advance assurance is what turns them from a nice idea into a reason an angel actually writes the cheque. In 25 years advising over 2,000 UK businesses, I have watched founders leave money on the table because they either did not understand the schemes or treated advance assurance as a rubber stamp. It is not a rubber stamp, and the data proves it.
Here is the uncomfortable truth: advance assurance is a screen you can fail. In 2025 to 2026, only 76% of SEIS and 72% of EIS advance assurance applications were approved, down from 85% and 76% the year before [1]. HMRC is making companies work harder to qualify, and a sloppy application does not just get delayed; it gets refused. The founders who breeze through are the ones who prepared properly.
This article explains what SEIS and EIS actually offer in 2026, what advanced assurance is and why it matters, the current limits after the April 2026 changes, and how to prepare an application that gets approved.
What SEIS and EIS give your investors
The Seed Enterprise Investment Scheme and the Enterprise Investment Scheme are the UK’s two flagship tax reliefs for investing in early-stage companies. SEIS gives investors 50% income tax relief on what they put in; EIS gives 30%. Both also offer capital gains relief. In plain terms, they reduce the downside for your angels, which makes your round materially easier to fill.
The numbers show how central they have become. In 2024 to 2025, 2,430 companies raised £276 million under SEIS, a 14% increase, while 3,735 companies raised £1,575 million under EIS [2]. Since the schemes began, they have channelled around £34 billion into roughly 59,000 UK businesses [3]. If you are raising from angels and you are eligible, not using these schemes puts you at a real disadvantage against companies that do.
What advance assurance is, and why it matters
Advance assurance is a request to HMRC, before you issue shares, for confirmation that it expects the relief to apply to your company and your proposed round. You are not obliged to get it, but you should, because it removes the single biggest hesitation for a UK angel: the fear that the relief they are counting on will not materialise.
Put yourself in the investor’s position. They are being asked to back a young, risky company, and the tax relief is a meaningful part of why the maths works for them. A founder who can say “we have advance assurance from HMRC” has de-risked the investment before the conversation even turns to valuation. A founder who cannot is asking the angel to take that risk on trust.
The current limits after April 2026
The thresholds are set by HMRC and change, so always confirm the current position before you rely on a figure. As at the 2026 to 2027 tax year, the position is as follows.
SEIS is unchanged from its April 2023 expansion: a company can raise up to £250,000 in total under the scheme, an individual can invest up to £200,000 a year, the company must have gross assets under £350,000, fewer than 25 employees, and be trading for under three years [4]. That 2023 expansion is why SEIS keeps growing; more than 60% of SEIS money now sits above the old £150,000 cap [3].
EIS limits rose sharply on 6 April 2026. A company can now raise up to £10 million a year and £24 million over its lifetime, with gross assets up to £30 million and up to 500 employees, and an individual can invest up to £1 million a year, or £2 million where at least £1 million goes into knowledge-intensive companies [4]. These are roughly double the previous ceilings, which materially widens the range of companies and rounds that qualify.
How to prepare an application that gets approved
The applications that get refused tend to share the same weaknesses: a business activity that does not clearly qualify, a company structure or age that breaches a limit, or a submission that leaves HMRC guessing. The applications that get approved are specific and complete.
Take a worked illustration. A founder raising £150,000 under SEIS needs to show HMRC that the company is under three years old, has gross assets under £350,000, carries on a qualifying trade, and has genuine investors lined up. Where each of those is evidenced clearly, the application is straightforward. Where the trade is ambiguous, or the company has drifted over an asset threshold, or the “investors” are hypothetical, the application stalls. Checking your eligibility against each condition before you submit is the difference between the 76% who are approved and the 24% who are not.
The order that works is: confirm eligibility first, then model your round so you know the dilution before you agree a valuation, then prepare and submit the application. Getting assurance early, before you are deep in conversations, means you negotiate from a position of confidence.
If you want this structured, the SGI SEIS and EIS Advance Assurance Kit pairs a preparation guide with a valuation and dilution model, so you get assurance-ready and see the ownership cost of the round before you commit. You can find the SEIS and EIS Advance Assurance Kit on the SGI Business Academy, read the full seven-phase funding sequence it belongs to, or step up to the complete Funding Operating System.
The bottom line
SEIS and EIS are the most powerful tools a UK founder has for filling an early round, and advanced assurance is what makes them credible to investors. Treat the application as the screen it is, prepare it properly, and confirm the current limits with HMRC before you rely on them. Do that, and you turn a tax scheme into a genuine fundraising advantage.
Frequently asked questions
Is advance assurance guaranteed? No. From 2025 to 2026, roughly a quarter of SEIS applications and more than a quarter of EIS applications were not approved [1]. It is a genuine assessment, and a weak or ambiguous application can be refused.
How long does advance assurance take? HMRC processing times vary, so allow several weeks and apply well in advance of when you need the relief confirmed. Applying early, rather than mid-negotiation with an investor, is always the stronger position.
Can I use both SEIS and EIS? Yes, and many companies do, using SEIS for the first, most tax-advantaged tranche up to the £250,000 limit, then EIS for larger investment. The schemes are designed to work in sequence as a company grows.
What changed for EIS in April 2026? The main company limits roughly doubled: annual investment to £10 million, lifetime to £24 million, gross assets to £30 million, and the employee cap to 500, with individual investor limits rising to £1 million, or £2 million for knowledge-intensive companies [4]. Always confirm the current figures with HMRC.
Do the schemes affect my company’s valuation? Indirectly. By making your shares more attractive to angels, the schemes can help you fill a round, but they do not set your valuation. Model the dilution separately so you agree a number you can live with through later rounds.
References
- HM Revenue & Customs, Enterprise Investment Scheme and Seed Enterprise Investment Scheme statistics: advance assurance activity 2025 to 2026 (May 2026), gov.uk.
- HM Revenue & Customs, EIS and SEIS statistics, funds raised 2024 to 2025 (May 2026), gov.uk.
- Enterprise Investment Scheme Association, HMRC Key Statistics 2026 commentary.
- GOV.UK, guidance on the Seed Enterprise Investment Scheme and Enterprise Investment Scheme (2026), including Finance Act 2026 EIS limit changes.
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Kurt Graver is the founder and CEO of SGI Consultants, a business consultancy that has helped over 2,000 entrepreneurs establish successful startups using systematic business development methodologies. An accountant with an MBA and 25 years of commerce and consultancy experience, Kurt specialises in strategic planning, market analysis, and sustainable business growth