EIS Tax Relief Calculator, 2026/27

How this is calculated

Income tax relief under EIS is given at 30.0% of the amount subscribed for qualifying shares, applied directly against your income tax liability for the year of investment (or the previous year if you carry the claim back), up to an annual investment limit of £1,000,000, doubled for knowledge-intensive companies.

Separately, capital gains deferral relief allows you to defer tax on a gain from any asset, not just shares, by reinvesting an amount equal to the gain into EIS shares. The deferred gain is not eliminated: it is 'frozen' and becomes chargeable again, typically when the EIS shares are eventually sold, unless you reinvest into further qualifying shares at that point.

This calculator applies the relief rate to your qualifying investment up to the annual limit, and separately calculates the amount of capital gains tax that is deferred based on the gain you specify and your CGT rate, giving you the net cash cost of the investment after the immediate income tax saving.

The other reliefs EIS can bring

Beyond income tax relief and gains deferral, EIS shares held for at least three years are normally free of capital gains tax on disposal, meaning any growth in value is tax-free on top of the up-front income tax relief, which is a significant combined benefit compared with an equivalent unwrapped investment.

If the company fails and the shares become worthless, EIS loss relief lets you set the loss, net of income tax relief already claimed, against income tax rather than only capital gains, which can substantially soften the downside of an unsuccessful investment.

Conditions and risks to understand

EIS relief is only available on shares in qualifying trading companies that are not listed on a main stock exchange, broadly under a certain number of employees and gross assets, and not in excluded sectors such as property development or financial activities.

Relief can be withdrawn if you become connected to the company, for example by holding more than 30% of the shares or becoming a paid director within specific timeframes, or if the company ceases to qualify within three years of the investment, so the risk profile is genuinely higher than most mainstream investments.

How much income tax relief can I get from EIS?

30% of the amount invested in qualifying shares, up to an annual investment limit, claimed against your income tax bill for the year of investment or, if you elect to carry back the claim, the previous tax year.

What is EIS capital gains deferral relief?

It lets you postpone tax on a gain from any asset by reinvesting an equivalent amount into EIS shares. The gain is not cancelled, only deferred, becoming chargeable again broadly when the EIS shares are disposed of.

Are EIS shares free of capital gains tax?

Growth in value on EIS shares is normally free of capital gains tax provided the shares are held for at least three years and income tax relief was given and not withdrawn on the original investment.

What happens if the EIS company fails?

You can typically claim loss relief against income tax on the amount invested, net of the income tax relief already received, which meaningfully reduces the net financial exposure compared with a straightforward share investment.