Section 14 | Enterprise investment scheme: increase in amounts and asset requirements

(1)Part 5 of ITA 2007 is amended as follows.

(2)In section 173A(1) (the maximum amount raised annually through risk finance investments requirement), for paragraphs (a) and (b) substitute—

(a)if at that date the issuing company is a knowledge-intensive company (see section 252A and subsection (5A)) and—

(i)not a specified Northern Ireland company, £20 million;

(ii)a specified Northern Ireland company, £10 million, and

(b)if at that date the issuing company is not a knowledge-intensive company and—

(i)not a specified Northern Ireland company, £10 million;

(ii)a specified Northern Ireland company, £5 million.

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(3)In section 173AA(1) (maximum risk finance investments at the issue date requirement), for paragraphs (a) and (b) substitute—

(a)if at the issue date the issuing company is a knowledge-intensive company (see section 252A) and—

(i)not a specified Northern Ireland company, £40 million;

(ii)a specified Northern Ireland company, £20 million, and

(b)if at the issue date the issuing company is not a knowledge-intensive company and—

(i)not a specified Northern Ireland company, £24 million;

(ii)a specified Northern Ireland company, £12 million.

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(4)In section 173AB(4) (maximum risk finance investments during period B requirement) for paragraphs (a) and (b) substitute—

(a)if at the issue date the issuing company is a knowledge-intensive company (see section 252A) and—

(i)not a specified Northern Ireland company, £40 million;

(ii)a specified Northern Ireland company, £20 million, and

(b)if at the issue date the issuing company is not a knowledge-intensive company and—

(i)not a specified Northern Ireland company, £24 million;

(ii)a specified Northern Ireland company, £12 million.

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(5)In section 175 (the use of the money raised requirement)—

(a)in subsection (1), for “The” substitute “A”;

(b)after subsection (1A), insert—

(1B)Another requirement of this section is that, of the money raised by the issue of the relevant shares (other than any of them which are bonus shares), only such part of that money as could have been raised by an issue of shares falling within subsection (1C) is employed for the purposes of a qualifying business activity that is carried on by one or more specified Northern Ireland companies.

(1C)Shares fall within this subsection if the general requirements referred to in section 172 as they apply in relation to shares issued by a specified Northern Ireland company are met in respect of them.

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(6)In section 186 (the gross assets requirement)—

(a)before subsection (1), insert—

(A1)In the case of relevant shares issued by a single company that is not a specified Northern Ireland company, the value of the company’s gross assets—

(a)must not exceed £30 million immediately before the relevant share issue, and

(b)must not exceed £35 million immediately afterwards.

(A2)In the case of relevant shares issued by a parent company that is not a specified Northern Ireland company, the value of the group assets—

(a)must not exceed £30 million immediately before the relevant share issue, and

(b)must not exceed £35 million immediately afterwards.

;

(b)in subsection (1), after “single company” insert “that is a specified Northern Ireland company”;

(c)in subsection (2), after “parent company” insert “that is a specified Northern Ireland company”.

(7)After section 256A, insert—

256BMeaning of “specified Northern Ireland company”

(a)has its registered office in Northern Ireland, and

(b)carries on a trade involving—

(i)a trade in goods, or

(ii)the generation, transmission, distribution, supply, wholesale trade or cross-border exchange of electricity.

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(8)The amendments made by this section come into force on 6 April 2026.