Angel Investment Calculator

The Seed Enterprise Investment Scheme offers 50% income tax relief on investments up to £200,000 per year in qualifying early-stage companies. Capital gains on SEIS shares held for 3+ years are completely exempt. If the company fails, you can claim loss relief at your marginal tax rate on the net cost (investment minus tax relief). SEIS is the most generous tax relief for startup investors.

The Enterprise Investment Scheme offers 30% income tax relief on investments up to £1 million per year (£2M if at least £1M is in knowledge-intensive companies). Capital gains on EIS shares held for 3+ years are exempt. Loss relief is available if the company fails. EIS companies can be more established than SEIS companies but must still meet qualifying criteria.

On a £50,000 SEIS investment: you immediately get £25,000 income tax relief (50%). If the company fails completely, you can claim loss relief on the remaining £25,000 at 45% = £11,250. Total tax benefits: £36,250. Your actual loss is only £13,750 on a £50,000 investment — a 72.5% downside protection. This significantly de-risks angel investing.

SEIS: company must have fewer than 25 employees, assets under £350,000, be less than 3 years old, and raising up to £250,000 total SEIS investment. EIS: company must have fewer than 250 employees (500 for knowledge-intensive), assets under £15M, and be less than 7 years old (10 for knowledge-intensive). Both require the company to be carrying on a qualifying trade.

You must hold the shares for at least 3 years from the date of investment (or the date the company started trading, if later) to retain the income tax relief and qualify for CGT exemption. If you sell before 3 years, the income tax relief is clawed back. There is no maximum holding period. Most angel investments are held for 5-10 years before exit.