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EIS Tax Relief Calculator 2025/26

Calculate income tax relief on EIS and SEIS investments, CGT deferral and reinvestment relief, and see what you actually lose if the company fails. All figures use HMRC 2025/26 rates.

£
Amount investing in EIS-qualifying shares
Determines your CGT rate for deferral calculations
£
Gain from any asset you want to defer via EIS (enter 0 if none)
KICs allow up to £2M annual investment (vs £1M standard)
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How to Use This Calculator

EIS Tax Relief tab

Enter your EIS investment amount, income tax band, and any capital gain you want to defer. The calculator shows your 30% income tax relief, the net cost of your investment, and the CGT deferred. Expand "More options" to indicate if the company is a knowledge-intensive company (KIC), which raises the annual limit from £1,000,000 to £2,000,000.

SEIS Relief tab

Enter your SEIS investment amount (max £200,000/year), tax band, and any capital gain to reinvest. See your 50% income tax relief and the 50% CGT reinvestment relief, which exempts half of any reinvested gain from CGT. The calculator shows your total tax benefit and effective cost of investment after all reliefs.

If It Goes Wrong tab

The worst case: the company fails and your shares are worth £0. This tab calculates exactly how much you actually lose after factoring in the initial income tax relief you already claimed and the additional loss relief available. Higher and additional rate taxpayers recover a larger percentage of their investment through loss relief.

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The Formula

EIS and SEIS relief calculations follow HMRC rules:

EIS Income Tax Relief
Relief = Investment × 30%
Max relief: £300,000/year (£1M × 30%) or £600,000 for KICs (£2M × 30%)

SEIS Income Tax Relief
Relief = Investment × 50%
Max relief: £100,000/year (£200,000 × 50%)

SEIS CGT Reinvestment Relief
Exempt gain = min(Capital Gain, SEIS Investment) × 50%
CGT saved = Exempt Gain × CGT Rate (18% or 24%)

EIS CGT Deferral
Deferred CGT = Capital Gain × CGT Rate
(Payable when EIS shares disposed of, unless rolled into another EIS)

Loss Relief (company fails, shares = £0)
Allowable Loss = Investment − Income Tax Relief Received
Loss Relief = Allowable Loss × Marginal Income Tax Rate
Net Loss = Investment − Initial Relief − Loss Relief

The key insight: even in the worst case (total company failure), a higher rate taxpayer investing via EIS loses around 42p per £1 invested, not £1. For SEIS, it is closer to 27.5p per £1. This is because the combination of upfront income tax relief and loss relief significantly cushions the downside.

Example

Sarah — Consultant, Higher Rate Taxpayer, London

Sarah earns £95,000 and has a £120,000 capital gain from selling a buy-to-let property. She invests £100,000 in an EIS-qualifying tech company and £50,000 in an early-stage SEIS company.

EIS Tax Relief tab

EIS investment£100,000
Tax bandHigher (40%)
Capital gain to defer£120,000
Income tax relief (30%)£30,000
CGT deferred (£120K at 24%)£28,800
Net cost of EIS investment£70,000

Sarah gets £30,000 off her income tax bill immediately and defers £28,800 in CGT. Her £100,000 investment effectively costs £70,000 after income tax relief, with the CGT payment pushed to whenever she sells the EIS shares.

If It Goes Wrong tab

If the EIS company fails completely:

Initial relief claimed£30,000
Allowable loss£70,000
Loss relief (£70K at 40%)£28,000
Total tax recovery£58,000
Actual money lost£42,000

Even in the worst case, Sarah's actual loss is £42,000, not £100,000. She recovers 58% of her investment through tax reliefs.

FAQ

You must hold EIS and SEIS shares for a minimum of 3 years from the date the shares were issued (or the date the company started trading, if later). If you sell before the 3-year period, HMRC will claw back some or all of the income tax relief, and any deferred CGT becomes immediately payable. After 3 years, any gain on the EIS shares themselves is completely exempt from CGT. Source: HMRC HS341.
Yes. EIS and SEIS have separate annual limits. You can claim up to £200,000 SEIS relief and up to £1,000,000 EIS relief (£2,000,000 for KICs) in the same tax year. However, the same company cannot issue both EIS and SEIS shares simultaneously — SEIS is typically used for the first raise, with EIS for subsequent rounds. You can also carry back relief to the previous tax year if you had sufficient income tax liability.
A knowledge-intensive company must meet at least one of two innovation conditions and one of two R&D spending conditions. Innovation conditions: the company is creating intellectual property, or has a workforce where at least 20% hold a relevant postgraduate degree. R&D spending: at least 15% of operating costs on R&D in the past 3 years, or at least 10% in the past 3 years with a credible plan to spend 15% in the next 5. KICs can raise up to £10M via EIS (vs £5M for standard companies). Source: HMRC VCM16060.
If an EIS or SEIS company fails and your shares become worthless, you make a negligible value claim to HMRC. The allowable loss is your original investment minus any income tax relief already received. This loss can be offset against your income (not just capital gains) at your marginal tax rate. There is no cap on the amount of EIS/SEIS loss relief that can be claimed against income. You can offset against income in the year of disposal or the previous year. The claim must be made within one year of 31 January following the tax year of the loss. Source: HMRC HS286.
Budget 2025 did not change EIS or SEIS income tax relief rates. EIS remains at 30% and SEIS at 50% for 2025/26. The main change affects Venture Capital Trusts (VCTs): the VCT income tax relief rate reduces from 30% to 20% from 6 April 2026. Budget 2025 also increased the EIS/VCT gross assets test from £15M to £30M (pre-investment) and from £16M to £35M (post-investment), allowing larger companies to qualify. The EIS and VCT scheme sunset clause has been extended to 2035. Source: gov.uk Budget 2025.

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