EIS tax relief calculator
EIS gives investors 30% income tax relief on shares in qualifying companies, on up to £1 million a year, or £2 million when at least £1 million goes into knowledge-intensive companies.
The formula
EIS = amount invested × 30% income tax relief
Worked example: £6,000
The example uses the guide's seed round, £200,000 for 20%, with a matching cap table, exit, fund and market.
- £20,000 × 30% = £6,000 off the investor's income tax bill
- Net cost £20,000 − £6,000 = £14,000
Try it with your numbers
Work out your EIS
Until you type a figure, the results show an example business. Fill in only what you know: from then on every result uses your figures alone, and nothing you type leaves your browser.
EIS relief for the example
Example£6,000
- £20,000 × 30% = £6,000 off the investor's income tax bill
- Net cost £20,000 − £6,000 = £14,000
- Relief cannot be more than the income tax the investor owes for the year.
Formula: Amount invested × 30% income tax relief.
- Net cost
- £14,000
- Hold for at least
- 3 years
- or relief can be taken back
Everything your numbers show
For the example business: 27 of 27. Type your own figures to replace them. Select one for its page.
- Valuation£1,000,000post-money
- Pre-money valuation£800,000
- Post-money valuation£1,000,000
- Equity20.0%Equity sold
- Dilution70.0%kept by existing shareholders, down from 100.0%
- Option pool142,857new pool shares
- Fully diluted60.0%Fully diluted ownership
- SAFE89,286shares
- Loan note96,429shares
- Pro rata rights£200,000Pro rata amount
- Liquidation preference£1,000,000to the investor
- Vesting180,000after 18 months
- Cliff120,000at month 12
- SEIS£10,000SEIS relief
- EIS£6,000EIS relief
- VCT£4,000VCT relief
- TAM£240,000,000a year
- SAM£60,000,000a year
- SOM£3,000,000a year
- Down roundDown round
- Up roundDown round
- Flat roundDown round
- MOIC2.80x
- IRR22.9%a year
- TVPI1.50x
- DPI0.40x
- Dry powder£24,000,000
How to read your result
Most startups use SEIS for their first £250,000 and EIS for money after that.
Watch out for
Relief cannot be more than the income tax the investor owes for the year.
Last checked . Estimates only, not financial, tax or legal advice: check your accounts and documents, and take advice before you act. More terms in the startup glossary.