The government published a call for evidence on tax support for entrepreneurs alongside the Autumn Budget 2025. In the document, the government notes a particular shortfall in domestic scale-up capital which it says is causing some of our most innovative companies and founders to move abroad. To address this problem, the government welcomes views on: 

• the effectiveness of existing tax support;
• the gaps in the tax system for founders and scaling companies; and
• options and ideas to improve, rebalance and better target current support, allowing the government to fill these gaps where needed. 

The government highlights changes announced in the Budget 2025 to existing schemes such as the enterprise investment scheme (EIS) and the enterprise management incentive (EMI) scheme, which allow larger and more established companies to continue to qualify to use the schemes. However, it notes that these changes “take the existing schemes as far as possible within their current design”. The government wants to look at how to provide more targeted and more effective support, which works effectively for the founders and entrepreneurs it targets, while representing good value for money for the taxpayer. 

The document notes in particular the difficult transition periods for scaling companies which have reached the venture capital trust and EIS investment limits and are seeking alternative sources of capital. It notes that this can create perverse incentives and behaviours from investors, for example by pushing current tax-advantaged investors to drop out at later funding rounds once the investment limits have been hit. Views are welcomed on options to prevent this. 

The government also wishes to look further at the different types of investors and investment, and which is best for founders and scaling companies at different stages. Beyond current investors, such as high-net-worth individuals and angel investors, there are other investor types that participate in the growth of scaling companies, for example, venture capital funds, corporate investors, family offices and private equity. The government is seeking views on the optimal role of these different investors, and what types of tax policies and incentives are most effective in encouraging each type of investor. 

Finally, the government would also like to gather views on whether the tax system could better support a strong reinvestment cycle among entrepreneurs and, if so, the best mechanism for doing this. It notes that the UK has a weak reinvestment cycle, with fewer examples of this kind of successful recycling of talent and capital.