EIS Tax Relief Calculator — Discovery Notes
JTBD
“How much tax relief do I get on my EIS investment?” / “What is SEIS relief worth to me as a higher rate taxpayer?” / “What do I actually lose if the startup fails?”
Target Audience
- Angel investors making their first EIS investment and wanting to understand the net cost after 30% income tax relief
- Higher/additional rate taxpayers with capital gains who want to defer CGT by reinvesting in EIS-qualifying companies
- Early-stage investors evaluating SEIS vs EIS relief — the 50% SEIS relief is significantly more generous but capped at £200,000
- Financial advisers and accountants calculating loss relief scenarios for clients considering venture capital schemes
- Startup founders explaining to potential investors the effective downside risk after all tax reliefs
Three Tabs Described
Tab 1: EIS Tax Relief
The core EIS calculator. Investor enters investment amount, income tax band, and any capital gain they want to defer. Output shows the 30% income tax relief, CGT deferral amount, net cost of investment, and effective cost percentage. Knowledge-intensive company (KIC) toggle raises the annual limit from £1M to £2M. The CGT deferral section explains when the deferred gain becomes payable and the post-3-year CGT exemption on the EIS shares themselves. This tab serves the primary “how much relief do I get?” intent.
Tab 2: SEIS Relief
SEIS-specific calculator for earlier-stage investments. Investor enters investment amount (max £200,000), tax band, and capital gain to reinvest. Output shows 50% income tax relief, 50% CGT reinvestment relief (distinct from EIS’s full deferral), and total effective cost after all reliefs. A higher rate taxpayer investing £100,000 in SEIS with a £100,000 gain to reinvest gets £50,000 income tax relief + £12,000 CGT saving = £62,000 in total reliefs on a £100,000 investment. This tab makes the powerful SEIS economics concrete.
Tab 3: If It Goes Wrong
The loss relief scenario — the company fails, shares are worth £0. This is the most differentiated tab. Most EIS calculators only show the upside. This tab walks through the step-by-step loss relief calculation: (1) initial income tax relief already claimed, (2) allowable loss = investment minus relief received, (3) loss relief = allowable loss offset against income at marginal rate. The headline number is “actual money lost” — typically 38-42p per £1 for EIS at higher rate, or 27.5p for SEIS at additional rate. This honest worst-case framing builds trust and is highly shareable.
Key Data — Verified from HMRC and GOV.UK (March 2026)
EIS (Enterprise Investment Scheme) — 2025/26
| Parameter | Value | Source |
|---|
| Income tax relief rate | 30% | HMRC HS341 |
| Annual investment limit | £1,000,000 | HMRC HS341 |
| KIC annual limit | £2,000,000 (if £1M+ in KICs) | HMRC VCM16060 |
| Minimum holding period | 3 years | HMRC HS341 |
| CGT on EIS shares after 3 years | Exempt (£0) | HMRC HS297 |
| CGT deferral | Full gain, no upper limit | HMRC HS297 |
| Loss relief | Allowable loss = investment minus relief, offset against income | HMRC HS286 |
| Max a company can raise via EIS | £5M per 12 months (£10M for KICs) | gov.uk |
| Company age limit | 7 years (10 for KICs) | gov.uk |
SEIS (Seed Enterprise Investment Scheme) — 2025/26
| Parameter | Value | Source |
|---|
| Income tax relief rate | 50% | HMRC HS393 |
| Annual investment limit | £200,000 (raised from £100K, April 2023) | HMRC HS393 |
| Minimum holding period | 3 years | HMRC HS393 |
| CGT reinvestment relief | 50% of gain exempt | HMRC HS393 |
| Max exempt gain | £100,000 (50% of £200K) | HMRC HS393 |
| Max a company can raise via SEIS | £250,000 | gov.uk |
| Company employee limit | Under 25 employees | gov.uk |
| Company gross assets limit | Under £350,000 | gov.uk |
VCT (Venture Capital Trust) — mentioned in context
| Parameter | Value | Source |
|---|
| Income tax relief rate (2025/26) | 30% | gov.uk |
| Income tax relief rate (from April 2026) | 20% (reduced in Budget 2025) | gov.uk Budget 2025 |
| Annual investment limit | £200,000 | gov.uk |
| Minimum holding period | 5 years | gov.uk |
| Dividends | Tax-free | gov.uk |
| CGT on VCT shares | Exempt | HMRC HS298 |
CGT Rates 2025/26 (for deferral/reinvestment calculations)
| Band | Rate | Source |
|---|
| Basic rate | 18% | HMRC (unified from Oct 2024) |
| Higher rate | 24% | HMRC |
| Additional rate | 24% | HMRC |
Income Tax Rates 2025/26 (for loss relief calculations)
| Band | Rate | Threshold |
|---|
| Basic | 20% | £12,571 - £50,270 |
| Higher | 40% | £50,271 - £125,140 |
| Additional | 45% | Over £125,140 |
Budget 2025 Changes (effective 6 April 2026)
- VCT income tax relief reduced from 30% to 20%
- EIS/VCT gross assets test increased: pre-investment from £15M to £30M, post-investment from £16M to £35M
- EIS and VCT schemes extended to 2035 (sunset clause pushed back)
- SEIS rates and limits unchanged
- EIS income tax relief rate unchanged at 30%
SEO Potential
- Keyword: “eis tax relief calculator” — high commercial intent, underserved by quality tools
- Keyword: “seis tax relief” — moderate volume, very high intent from active angel investors
- Keyword: “eis loss relief calculator” — unique differentiator, no competitor offers this as a first-class tab
- Keyword: “eis relief 2025 26” — informational/seasonal, peaks around tax year end
- Keyword: “seis annual limit 2025” — informational, people verifying the £200K limit
- Keyword: “eis cgt deferral” — moderate volume, planning intent
- Long-tail: “how much do I lose if eis company fails” — very high intent, our Tab 3 directly answers this
- Long-tail: “eis vs seis tax relief” — comparison intent, calculator covers both
Legal References
- /uk/capital-gains-tax-calculator — CGT on shares and property (EIS defers/exempts these)
- /uk/income-tax-calculator — Income tax liability that EIS/SEIS relief reduces
- /uk/isa-calculator — Alternative tax-efficient wrapper for comparison
- /uk/self-assessment-calculator — Where EIS/SEIS relief is actually claimed
- /uk/dividend-tax-calculator — Dividend tax on non-EIS investment returns
- /uk/pension-calculator — Another tax-relief investment vehicle for comparison
Differentiation vs Competitors
- Most EIS calculators (Seedrs, SyndicateRoom, Octopus) only show the upside — the 30% relief and CGT deferral. None provide a first-class “company fails” tab showing the actual downside after loss relief.
- The loss relief calculation is step-by-step and shows intermediate values (allowable loss, marginal rate offset), not just a final number. This builds trust with sophisticated investors.
- SEIS CGT reinvestment relief (50% exempt) is frequently confused with EIS CGT deferral (full deferral). Having separate tabs with distinct calculations prevents this confusion.
- Shareable URL means an adviser can send the exact scenario to a client — most competitor calculators do not preserve state in the URL.
- Budget 2025 context (VCT rate reduction, EIS limits unchanged) is included in the version banner — no competitor updates this promptly.