EIS Loss Relief Calculator

If an EIS investment fails (the company goes bust or you sell at a loss), you can claim EIS loss relief. The loss is calculated on the 'net cost' — the amount invested minus the 30% income tax relief already received. This net loss can be offset against other income or capital gains.

EIS gives 30% income tax relief upfront. So a £10,000 investment has a 'net cost' of £7,000. If the company fails completely, you can only claim EIS loss relief on £7,000, not the full £10,000 (HMRC prevents double relief).

Yes — you can set an EIS loss against your income in the year of disposal or the preceding year (ITA 2007 s131). This is particularly valuable for higher or additional rate taxpayers as the relief is worth 40% or 45%.

Yes — alternatively or additionally, you can set the EIS loss against capital gains. Capital gains tax rates on EIS losses are 10% (basic rate) or 20% (higher/additional rate). Income tax relief is usually more valuable.

If the company fails within 3 years of issue, HMRC claws back the 30% income tax relief through an assessment. If it fails after 3 years, the relief is retained and the EIS loss is still calculated on the reduced net cost.

No minimum. However, EIS investment itself has a maximum of £1,000,000 per year (£2,000,000 for 'knowledge-intensive' companies). Loss relief applies to whatever amount was invested within EIS limits.

SEIS provides 50% income tax relief (vs 30% for EIS), so the net cost is 50% of the investment. SEIS loss relief works on the same principle — the net cost is the basis for the loss claim, not the gross investment.

Yes — a disposal doesn't have to be on a stock exchange. A private sale or liquidation distribution both qualify. You claim the relief on your Self Assessment return in the year of disposal.