EIS & SEIS Tax Relief UK —
Invest Tax-Efficiently in UK Startups
Expert EIS and SEIS advice for UK investors — income tax relief up to 50%, CGT deferral, IHT exemption after 2 years and loss relief. We identify qualifying investments, prepare all HMRC claims and ensure you extract the maximum tax benefit from every qualifying investment.
EIS & SEIS — The UK’s Most Generous Tax Reliefs
The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are two of the most generous tax reliefs available to UK investors — offering income tax relief, CGT deferral, IHT exemption and loss relief on investments in qualifying early-stage companies. Used correctly, they can dramatically improve the after-tax return on startup investments.
SEIS (Seed Enterprise Investment Scheme) — for investments in very early-stage companies. Income tax relief of 50% on investments up to £200,000 per year (maximum relief £100,000). Gains on qualifying disposals are exempt from CGT after 3 years. Capital losses on disposal are eligible for income tax loss relief at your marginal rate — providing meaningful downside protection.
EIS (Enterprise Investment Scheme) — for investments in qualifying growth companies. Income tax relief of 30% on investments up to £1 million per year (£2 million if invested in knowledge-intensive companies). Gains are exempt from CGT after 3 years. Unlimited CGT deferral — reinvesting a capital gain into EIS shares defers the original gain indefinitely until the EIS shares are sold. After 2 years, EIS shares are IHT exempt under Business Property Relief.
The combined effect of these reliefs is transformative. An EIS investment of £100,000 costs just £70,000 after 30% income tax relief. If the investment fails entirely, loss relief at 45% (additional rate taxpayer) means the after-tax loss is only £38,500 — from a £100,000 investment. If the investment succeeds and doubles, the £100,000 gain is CGT-free. The risk/reward profile is fundamentally changed by these reliefs.
✅ What’s Included
- ✓ EIS qualifying investment assessment
- ✓ SEIS qualifying investment assessment
- ✓ Income tax relief claim (S1(EIS)/(SEIS))
- ✓ CGT deferral relief claim
- ✓ EIS loss relief calculation
- ✓ SEIS/EIS CGT exemption confirmation
- ✓ IHT BPR assessment (2yr+ holdings)
- ✓ EIS carry back to prior year
- ✓ HMRC advance assurance review
- ✓ Self Assessment EIS/SEIS pages
- ✓ Portfolio review for qualifying status
- ✓ Annual compliance check
Our Process — Structured & Proactive
Is This Service Right for You?
Business Owners & Directors
Limited company directors, sole traders and partnerships benefit most from proactive planning — the intersection of personal and corporate tax creates the most planning opportunities.
Higher & Additional Rate Taxpayers
Individuals paying 40-45% income tax have the most to gain from proactive planning — every pound moved from the higher rate band into a pension or tax-efficient wrapper saves 20-25p in tax.
Property Investors & Landlords
Property investors face CGT on disposal, Section 24 on income and SDLT on acquisition — proactive planning across all three significantly reduces the lifetime tax cost of a property portfolio.
International & Mobile Taxpayers
Individuals with international tax exposure — non-residents, non-domiciliaries, those with overseas assets — benefit from specialist planning to minimise UK and overseas tax efficiently.
EIS & SEIS Investment — Common Questions
EIS income tax relief is 30% of the amount invested in qualifying EIS shares, up to a maximum investment of £1 million per tax year (£2 million for knowledge-intensive companies). So a £100,000 EIS investment generates a £30,000 income tax reduction — not a deduction from income, but a direct reduction in your income tax bill. The relief can be carried back one year if you cannot use it all in the current year. SEIS offers 50% relief on up to £200,000 per year.
EIS CGT deferral relief allows you to defer a capital gain (from any source — property, shares, business sale) by reinvesting the gain into qualifying EIS shares. The deferred gain is held over until the EIS shares are disposed of — at which point it crystallises (potentially at a lower CGT rate or in a year with more available exemptions). There is no limit on the gain that can be deferred via EIS, and the investment does not need to be in the same year as the gain — it can be made up to 3 years after the gain arises.
EIS and SEIS shares can qualify for Business Property Relief (BPR) after being held for 2 years — making them IHT exempt. This makes them potentially attractive for IHT planning — combining income tax relief on entry with IHT exemption after 2 years and CGT exemption on disposal. However, BPR qualification depends on the underlying company’s trading activities at the time of the investor’s death — we advise on BPR eligibility as part of our EIS/SEIS portfolio review.
If your EIS or SEIS investment fails and you receive less back than you invested (after income tax relief), you can claim income tax loss relief on the net loss. The net loss is calculated as: amount invested minus income tax relief received, minus disposal proceeds. This net loss can be set against income in the year of disposal or the previous year — generating a further tax saving. For an additional rate taxpayer losing £50,000 net on an EIS investment, the loss relief is worth £22,500 in income tax.
To claim EIS income tax relief, you need an EIS3 certificate issued by the company (after HMRC has given interim approval and the company has met the qualifying conditions for the required period). You then claim the relief on your Self Assessment tax return (or via a standalone claim). SEIS operates similarly with an SEIS3 certificate. Companies cannot issue certificates until they have been trading for at least 4 months, and EIS certificates cannot be issued for at least 3 years. We track all pending certificates for clients with EIS/SEIS investments.
Fixed Fees — Agreed Upfront
All packages include: ACCA qualified adviser · HMRC agent · client portal · 2-hour response guarantee. Book a free consultation →
Complete Your Tax Planning Package
EIS & SEIS — Claim Every Relief Available
Book a free consultation and we’ll review your EIS/SEIS portfolio — ensuring every income tax relief, CGT deferral and IHT exemption opportunity is correctly claimed.