EIS / SEIS Tax Relief Calculator 2026/27
The Seed Enterprise Investment Scheme (SEIS) and Enterprise Investment Scheme (EIS) both give UK investors significant Income Tax relief for backing early-stage companies, in exchange for taking on the higher risk of investing in unlisted, often pre-revenue businesses. SEIS offers 50% Income Tax relief on investments up to £200,000 per tax year, while EIS offers 30% Income Tax relief on investments up to £1 million per year (or £2 million if at least £1 million goes into knowledge-intensive companies) — both limits and rates confirmed unchanged for 2026/27.
Beyond the upfront Income Tax relief, both schemes offer Capital Gains Tax exemption on any growth in the investment if held for the qualifying period (usually 3 years), and CGT deferral relief under EIS, allowing you to defer a gain from elsewhere by reinvesting it into EIS shares. If the company fails, loss relief can offset the loss (net of the Income Tax relief already claimed) against your Income Tax or Capital Gains Tax.
Worked example: investing £20,000 into a SEIS-qualifying startup gives an immediate £10,000 reduction in your Income Tax bill (50% relief) — so your real financial exposure is effectively £10,000, not £20,000. If the company later fails entirely, loss relief on the remaining £10,000 at a 45% additional-rate tax band could recover a further £4,500, reducing the true net loss to around £5,500 on the original £20,000 invested.
Both schemes carry genuine investment risk — the tax reliefs exist specifically because these are high-risk, illiquid investments in early-stage companies, many of which fail. This calculator estimates the tax relief available; it isn't investment advice, and SEIS/EIS investments should only be made as part of a diversified portfolio with money you can afford to lose.
Frequently asked questions
What is the difference between EIS and SEIS?
SEIS (Seed Enterprise Investment Scheme) offers 50% Income Tax relief on investments up to £200,000 per year in very early-stage companies. EIS (Enterprise Investment Scheme) offers 30% relief on up to £1,000,000 per year (or £2,000,000 in knowledge-intensive companies). Both also offer CGT relief and loss relief.
How long do I need to hold EIS shares to keep the tax relief?
You must hold EIS shares for at least 3 years to keep the Income Tax relief. Selling before 3 years means HMRC will claw back the relief. SEIS shares also require a 3-year holding period.
Can I carry back EIS relief to the previous tax year?
Yes. You can carry back EIS investments to the previous tax year, up to the unused annual investment limit of £1,000,000. This lets you reduce your prior year's tax bill if you have already filed. SEIS carry-back works the same way.
Is EIS relief available against Capital Gains Tax as well?
Yes. If you reinvest a capital gain into EIS shares within 3 years, you can defer paying CGT on that gain until the EIS shares are sold. If the EIS investment is held for 3+ years, any gains on the EIS shares themselves are completely free of CGT.
What happens if the EIS company fails?
If EIS shares become worthless, you can claim loss relief — offsetting the net loss (after the 30% tax relief) against income in the same or previous year, or against capital gains. This significantly reduces the downside risk of EIS investing.