Sapphire Capital Partners warns higher capital gains tax could curb EIS reinvestment

• Potential tax changes in the October 28, 2026, Budget could reshape EIS and SEIS investment incentives; no measures are confirmed.
• A capital gains tax increase from 18% and 24% could strengthen investment reliefs but discourage asset sales, reducing gains available for reinvestment.
• Proposed relief for founders reinvesting business-sale proceeds could channel capital into EIS and SEIS or compete with them if structured separately.
• Raising the £2.5 million cap on 100% business relief could strengthen EIS estate-planning incentives; unused pensions enter inheritance tax from April 2027.
• Planned regional growth funds could improve follow-on financing for EIS and SEIS companies, but poorly targeted public investment risks crowding out early-stage investors.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Sapphire Capital Partners LLP published the original content used to generate this news brief on October 19, 2026, and is solely responsible for the information contained therein.