McPhersons is now part of Galloways Accounting. We’re looking forward to sharing the next stage of our journey with the Galloways group, and share their vision for helping you, our clients, to have more time to enjoy the things you love.
McPhersons is now part of Galloways Accounting. We’re looking forward to sharing the next stage of our journey with the Galloways group, and share their vision for helping you, our clients, to have more time to enjoy the things you love.
January 5, 2026
Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) are both set to experience changes from April 2026, as was revealed in the Autumn Budget.
These schemes were viewed as outdated and the reforms aim to modernise their effectiveness.
This is part of the Government’s desire to be seen supporting entrepreneurship and scale-ups, while also recalibrating the balance of tax relief between different investment routes.
Who will be affected?
Following the Autumn Budget, a policy paper outlined the main measures of the proposed reforms.
This indicated that the measures will affect companies raising finance under EIS and VCTs, as well as individual investors using these schemes, fund managers and advisers involved in structuring and promoting qualifying investments.
It is hoped that several hundred businesses will stand to directly benefit from the changes, especially if they were staring down the existing funding or asset limits.
The news is less welcome for the 24,000 individual investors who are likely to be hit by the reduction in VCT Income Tax relief.
What are the key changes?
Upcoming legislation will seek to amend the Income Tax Act 2007 and bring about a host of reforms.
These include:
Certain companies operating in Northern Ireland in specific sectors linked to electricity generation and supply will be unaffected by the changes and must follow the current limits.
