Entity Setup

Maximising Reliefs: SEIS, EIS, and Business Asset Disposal Relief Post-April 2026

New rules effective from April 2026 alter reliefs for seed/start-ups and business disposals—discover eligibility, rates, and strategic timing to make the most.

By NomadicTax Research Team • 7 min read • June 22, 2026

## Background: SEIS & EIS enhancements, and Business Asset Disposal Relief shift The UK government has adjusted key reliefs affecting early-stage investment and business disposals. Among changes from **6 April 2026**: - **EIS & VCT schemes** have increased annual and lifetime investment limits, gross assets thresholds, but reduced VCT income tax relief rate.([gov.uk](https://www.gov.uk/government/publications/enterprise-investment-scheme-eis-and-venture-capital-trusts-vct-changes/venture-capital-trusts-enterprise-investment-scheme-investment-limit-increase-and-restructure?utm_source=openai)) - **SEIS reinvestment relief** rules clarified for tax year 2025-2026.([gov.uk](https://www.gov.uk/government/publications/seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-hs393-self-assessment-helpsheet/hs393-seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-2026?utm_source=openai)) - **Business Asset Disposal Relief (BADR)** rate increased from **14% to 18%** for qualifying disposals disposed of **on or after 6 April 2026**.([gov.uk](https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet/hs275-business-asset-disposal-relief-2026?utm_source=openai)) ## Key details and examples ### SEIS (Seed Enterprise Investment Scheme) - Gains realised in **tax year 2025-2026** can be reinvested in qualifying SEIS shares to receive **reinvestment relief**, allowing up to **50% of the gain** exempt from CGT subject to conditions. Maximum reinvestment relief is capped at **£100,000**.([gov.uk](https://www.gov.uk/government/publications/seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-hs393-self-assessment-helpsheet/hs393-seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-2026?utm_source=openai)) - SEIS income tax and capital gains relief require submitting form **SEIS3** and holding shares for the qualifying period.([gov.uk](https://www.gov.uk/government/publications/seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-hs393-self-assessment-helpsheet/hs393-seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-2026?utm_source=openai)) ### EIS & VCT changes - Gross assets limit for companies before share issue increased from **£15m to £30m**, and after issue from **£16m to £35m**. Annual investment limits raised to **£10m** (or **£20m** for knowledge-intensive companies); lifetime limits to **£24m** (or **£40m** for KICs).([gov.uk](https://www.gov.uk/government/publications/enterprise-investment-scheme-eis-and-venture-capital-trusts-vct-changes/venture-capital-trusts-enterprise-investment-scheme-investment-limit-increase-and-restructure?utm_source=openai)) - VCT relief rate for Income Tax reduced from **30% to 20%** from 6 April 2026. EIS still provides 30%.([gov.uk](https://www.gov.uk/government/publications/enterprise-investment-scheme-eis-and-venture-capital-trusts-vct-changes/venture-capital-trusts-enterprise-investment-scheme-investment-limit-increase-and-restructure?utm_source=openai)) ### Business Asset Disposal Relief (BADR) - Qualifying gains disposed **on or after 6 April 2026** are taxed at **18% CGT** under BADR. Before that, from 6 April 2025 to 5 April 2026, the rate was **14%**.([gov.uk](https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet/hs275-business-asset-disposal-relief-2026?utm_source=openai)) - Lifetime limit remains at **£1 million**, as per Entrepreneur’s Relief architecture.([gov.uk](https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet/hs275-business-asset-disposal-relief-2026?utm_source=openai)) ## Strategic actionables - **Timing matters:** If you plan to dispose of business assets, do so *before* 6 April 2026 to benefit from the lower 14% rate; after that the rate is higher. Plan ahead for share or business sale transactions. - **For investors in early-stage firms**: consider investing under SEIS or EIS earlier, noting the increased limits and thresholds—maximising relief before potential future policy shifts. - **VCT investors** must account for reduced Income Tax relief from 6 April 2026. Review existing allocations and projections—perhaps shift towards EIS or other reliefs where possible. - **Ensure eligibility**: maintain holding periods, qualification of company (knowledge intensive where relevant), and necessary certifications (e.g. SEIS3, EIS compliance documents). ## Example scenarios - An investor has a chargeable gain of £80,000 in tax year 2025-26, and reinvests that full amount into qualifying SEIS shares: **£40,000 (50%)** of gain could be exempt from CGT, with £100,000 cap considered.([gov.uk](https://www.gov.uk/government/publications/seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-hs393-self-assessment-helpsheet/hs393-seed-enterprise-investment-scheme-income-tax-and-capital-gains-tax-reliefs-2026?utm_source=openai)) - A business owner disposes of qualifying business assets on 1 April 2026: taxed at **14%**. If the same disposal occurs on 1 May 2026, under new rules it's **18%**. That switch increases tax on £500,000 gain by **£20,000**. ## Caveats and compliance risks - Ensure you hold the shares for the required period and that the business meets the definition of knowledge-intensive (if using higher thresholds). - Keep supporting documents like SEIS3, EIS compliance statements—they’re essential for HMRC claims. - Review lifetime limits carefully—once used, they limit future relief availability. ## Final thoughts Whether you’re an investor eyeing early-stage growth companies or a business owner planning exits or disposals, these changes have major tax consequences. **Optimize timing**, **check eligibility**, and **stay compliant**—because mis-steps can be costly under these new rates.