Answers · UK 2025/26
What is EIS / SEIS tax relief in the UK?
EIS (Enterprise Investment Scheme) and SEIS (Seed EIS) give UK investors generous tax relief for investing in small early-stage companies. SEIS: 50% Income Tax relief on up to £200,000/year. EIS: 30% Income Tax relief on up to £1m/year. Both include CGT exemption and loss relief.
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UK Enterprise Investment Scheme (EIS) and Seed EIS (SEIS) reward private investment in qualifying small UK companies. SEIS (more generous, earlier-stage): 50% Income Tax relief on investments up to £200,000/year (increased from £100k in April 2023); CGT-free disposal after 3 years; 50% CGT reinvestment relief; loss relief at marginal rate on any net loss. EIS: 30% Income Tax relief on up to £1m/year (£2m if at least £1m is in knowledge-intensive companies); CGT-free disposal after 3 years; CGT deferral relief (defer gains by reinvesting); loss relief. Carry-back to previous tax year is allowed. Risks: investee companies are by definition early-stage and high-failure-rate. Hold at least 3 years to keep the relief. Use the Self Assessment tax return (or HS297 form). The Venture Capital Trust (VCT) scheme is similar — 30% Income Tax relief, £200k cap, no CGT inside the wrapper.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.