The ‘Sunset Clause’ And Its Potential Impact On EIS Tax Relief

Investors have been encouraged to invest in early-stage start-ups by various venture capital schemes, including the Seed Enterprise Investment Scheme (“SEIS”), Enterprise Investment Scheme (“EIS”) and Venture Capital Trust Scheme (“VCT”), which have greatly benefited the UK economy. The EIS scheme saw 3,755 companies raise a total of £1.66bn between 2021 and 2022, while 4,165 firms raised £1.89bn the year prior, according to data from HM Revenue & Customs.