Since its inception in 1994, EIS, alongside the Seed Enterprise Investment Scheme (SEIS), has driven over £32 billion of investment into 56,000 UK businesses. The extension was first announced in November 2023, when the government proposed a 10-year continuation of the EIS until April 2035, which was subsequently passed as part of the Finance Act 2024 in February. However, a legal requirement for the Treasury to confirm the order meant that the future of the scheme remained uncertain until its official confirmation on 3 September.

Christiana Stewart-Lockhart, Director General of the Enterprise Investment Scheme Association (EISA), commented: “We are delighted that this crucial extension has now been confirmed, providing some much-needed certainty for entrepreneurs and investors across the UK. By encouraging investment in high-risk, high-reward ventures, EIS has helped to fuel a culture of entrepreneurship and creativity in the UK. This is fantastic news and something that the EISA has been campaigning on for many years.”

Joanna Jensen, Chair of the EISA and founder of Childs Farm, added: “As a founder and investor, EIS has been a vital part of my entrepreneurial journey, and I am delighted innovators across the UK will continue to benefit from the scheme. The new Labour government has been quick to emphasise the importance of ensuring the UK continues to be the best place to start a business and has highlighted their commitment to supporting start-ups to raise the capital they need to invest and grow our economy.”