Earlier today the Chancellor delivered his Autumn Statement. Included in this announcement was confirmation that the EIS will be extended beyond the 2025 sunset clause to 2035.

This has been EISA’s number one priority over the last few years and we’re delighted that entrepreneurs and investors now have some much needed certainty regarding the future of the EIS. Thank you to all our members for your support in helping to achieve recognition of the importance of the EIS. This is fantastic news for start-ups across the UK and you can read the full announcement here.

4.52 The government also remains committed to ensuring early-stage, innovative companies have access to the investment they need to grow and develop. To continue supporting thousands of start-ups and small and medium-sized (SME) each year who face the biggest challenges in accessing growth capital, the government will legislate to extend the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) to 2035.

5.76 Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) extension – The government will legislate in the Autumn Finance Bill 2023 to extend the existing sunset clauses for the EIS and VCT from 6 April 2025 to 6 April 2035.

Since its inception in 1994 nearly £30 billion has been invested into 53,000 start-ups through the EIS.

Without the extension announced in today’s Autumn Statement the EIS would have ceased in April 2025, likely resulting in an end to billions of pounds of much needed investment into many of the UK’s most innovative businesses.

Christiana Stewart-Lockhart, Director General of the EISA commented, “The extension of the EIS is excellent news for early stage business growth in the UK. Entrepreneurs are now able to seek much needed investment with the confidence that the EIS will still be available to support their future growth beyond April 2025. The current economic climate has definitely been a challenge for many entrepreneurs and this announcement about the EIS will provide some much needed reassurance for entrepreneurs and investors across the UK.

Today’s announcement is fantastic news for start-ups in all regions and devolved nations. This is a world leading scheme. It’s success in fostering innovation and entrepreneurship, as well as economic growth, has been internationally recognised and it’s great to see the Government backing British businesses in this way. The Government’s emphasis on the importance of entrepreneurship in our economic recovery is very welcome.”

 

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