SEIS and EIS tax relief calculator

SEIS and EIS are two separate schemes with the same structure and different generosity. SEIS is for the earliest stage; EIS is for companies slightly further along.

Income tax relief is limited to the income tax you actually owe. It reduces a liability; it does not generate a refund beyond it. An investor with a £20,000 tax bill cannot extract £50,000 of relief however much they invest, though relief can be carried back one tax year.

A £100,000 EIS investment by an additional rate taxpayer.

• Income tax relief at 30%: £30,000. Net cash cost so far £70,000.
• Hold three years and exit at £300,000: the £200,000 gain is free of capital gains tax.
• Or the company fails and the shares become worthless. Loss relief applies to the net cost of £70,000, relieved at the investor's marginal rate of 45% = £31,500.
• Worst case net loss: £100,000 - £30,000 - £31,500 = £38,500.

That downside is the part investors underestimate. A total write-off of £100,000 costs an additional rate taxpayer £38,500 after both reliefs, so roughly 61% of the capital is underwritten by the tax system. It is what makes the risk profile of early stage investing different from ordinary equity, and it is the number worth quoting when you are raising.

SEIS is more generous still: 50% income tax relief, and loss relief on a net cost of £50,000 per £100,000 invested.

The relief belongs to the investor but the compliance sits with the company, and getting it wrong removes the relief retrospectively.

• Advance assurance from HMRC before the raise. Not legally required, but almost every investor asks for it and it is the practical gate.
• Shares must be ordinary, fully paid, and carry no preferential rights to dividends or assets on a winding up. A preference share does not qualify.
• The money must be spent on a qualifying trade within a set period, and the company must have a permanent establishment in the UK.
• SEIS before EIS. A company that issues EIS shares first can no longer use SEIS. The order is not reversible and it is a common and expensive mistake.
• Form SEIS1 or EIS1 after trading begins, which produces the SEIS3 or EIS3 certificates investors need to claim.

• Relief is capped at your income tax liability for the year. This is the single most common disappointment, and it is why the carry back to the previous tax year exists.
• Connected persons do not qualify. An employee, a director in most cases, or anyone holding more than 30% of the company cannot claim relief on their own investment. Founders generally cannot SEIS their own company.
• Selling within three years withdraws the relief, and HMRC reclaims it.
• Some trades are excluded outright, including property development, most financial services, legal and accountancy services, and energy generation benefiting from subsidies.
• The company limits are annual and lifetime limits across all risk finance schemes, and there is an age limit on when a company can first raise.
• Loss relief against income is subject to the general cap on income tax reliefs, which can restrict very large claims.

SEIS gives 50% income tax relief on investments up to £200,000 a year. EIS gives 30% on up to £1,000,000 a year, or £2,000,000 where the excess is in knowledge intensive companies. Relief is capped at the income tax you actually owe for the year; it reduces a liability rather than generating a refund beyond it, though it can be carried back one tax year.

For an additional rate taxpayer, a £100,000 EIS investment attracts £30,000 of income tax relief, leaving a net cost of £70,000. If the shares become worthless, loss relief applies to that £70,000 at the investor’s marginal rate of 45%, worth £31,500. The worst case net loss is therefore £38,500 on £100,000 invested, so roughly 61% of the capital is underwritten by the tax system.

Generally no. Relief is not available to persons connected with the company, which includes employees, directors in most cases, and anyone holding more than 30% of the share capital or voting rights. There is a limited exception allowing a director to qualify for EIS in some circumstances, but founders holding a normal equity stake cannot claim relief on their own investment.

Yes, and the order cannot be reversed. A company that issues EIS shares first can no longer use SEIS at all. SEIS is limited to £250,000 over the company’s lifetime and, from 6 April 2026, EIS to £10,000,000 a year and £24,000,000 in total for most companies (£20,000,000 and £40,000,000 if knowledge intensive). Getting the sequence wrong is a common and expensive mistake because it permanently removes the more generous relief.

Three years from the date of issue, or from the date the trade started if that is later. Selling before then withdraws the income tax relief and HMRC reclaims it. Holding for the full period means any gain on exit is free of capital gains tax.

SEIS and EIS are HMRC venture capital schemes that can make early-stage share issues more attractive to individual investors. Broad company-side headlines (check GOV.UK for your facts): SEIS is aimed at very early companies (generally under 3 years, fewer than 25 employees, gross assets no more than £350,000) with a lifetime SEIS raise limit of £250,000. EIS generally allows larger raises (GOV.UK currently states a lifetime EIS and VCT combined limit of £24 million for most companies), with employee and age tests that differ for knowledge-intensive companies. Investor income tax relief is 50% for SEIS (up to £200,000 invested per tax year) and 30% for EIS (up to £1 million, or £2 million where at least £1 million is in knowledge-intensive companies). Advance assurance is optional but commonly used. These schemes have detailed eligibility rules. Do not market them to investors without checking the current GOV.UK conditions.