EIS Calculator: Estimate Your Reliefs

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The Enterprise Investment Scheme (EIS)

The Enterprise Investment Scheme (EIS) offers one of the most generous tax incentives for investors interested in supporting the UK's high-growth, early-stage businesses. With benefits designed to maximise returns and reduce risk, the EIS encourages investment in innovative companies by providing a substantial range of tax relief options.

Download our guide to learn how you can leverage the EIS for tax-efficient investing and support the next generation of British businesses.

Investor Guide

Maximising Tax Efficiency through EIS Investments

  • Claim 30% income tax relief on the value of your investment.
  • Pay zero capital gains tax when selling EIS shares.
  • Defer existing capital gains tax liabilities to later years.
  • Pass on shares free of inheritance tax.
  • Claim loss relief should an unexpected event arise.
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What is an EIS Calculator? How the EIS Calculator Works Benefits of Using the EIS Calculator Example of EIS Calculations

What is an EIS Calculator?


This EIS calculator is a specialised tool designed to help investors estimate the potential benefits of investing in an Enterprise Investment Scheme (EIS) eligible investment opportunity. It provides a detailed analysis of various tax reliefs and financial gains associated with EIS investments, essentially working as multiple calculators in one such as:

  1. Expected Return Calculation
  2. EIS Income Tax Relief Calculator
  3. EIS Capital Gains Tax Deferral Calculator
  4. EIS Loss Relief Calculator
  5. Net Loss (after income tax and loss relief)

Gaining a comprehensive understanding of these EIS features, among others, is crucial for investors aiming to make informed and strategic decisions.

How the EIS Calculator Works


The EIS calculator functions by analysing the financial circumstances of each investor. By incorporating variables such as investment amount, tax bracket, and anticipated growth, the calculator provides a detailed projection of potential tax reliefs, including EIS loss relief and CGT deferral.

This comprehensive analysis extends to estimating the overall financial impact of an EIS investment, offering investors a transparent view of potential performance, all factors considered.

By leveraging this tool, investors can strategically plan their investments, optimise tax efficiency, and align their financial strategies with long-term goals.

Benefits of Using the EIS Calculator


Some of the primary advantages of utilising an EIS tax relief calculator include:

  • Accurate Estimation of Tax Reliefs: The calculator displays tax savings, encompassing various reliefs such as income-tax relief and loss relief. Other than the expected return, EIS calculations are accurate meaning investors can better plan their investments.

  • Optimised Tax Efficiency: The tool aids in meticulously planning investments to maximise tax benefits while minimising liabilities, thereby enhancing the overall tax efficiency of an investor's portfolio.

  • Enhanced Financial Planning: By projecting potential investment gains, the calculator supports the development of robust long-term financial strategies, enabling investors to achieve their financial goals with greater confidence.

Example of EIS Calculations


Understanding the potential benefits of the Enterprise Investment Scheme can be enhanced by examining specific examples of EIS calculations, which also reveal how the EIS calculator effectively works these out.

EIS Investment Gain

An investor who invests £100,000 in an EIS-qualifying company and achieves a 3x return, growing the investment to £300,000, can benefit significantly from tax-free capital gains. The £200,000 gain is exempt from capital gains tax, substantially enhancing the overall return on investment.

EIS Loss Relief

Consider an investor who invests £100,000 in an EIS-qualifying company. If the investment results in a loss, the investor can claim loss relief against their income tax. Assuming a 45% income tax rate, the investor could potentially claim £45,000 in loss relief, significantly mitigating the financial impact of the loss.

EIS Deferral Relief

An investor with a capital gain of £50,000 from the sale of an asset can defer the capital gains tax by investing the amount in an EIS-qualifying company. This deferral allows the investor to postpone the capital gains tax liability, providing flexibility in managing their tax obligations whilst potentially benefiting from a lucrative return.

EIS Income-tax Relief

If an investor puts £50,000 into an EIS-qualifying company, they can claim 30% income tax relief on the investment. This results in a £15,000 reduction in their income tax liability, making the investment more financially attractive.

Net Loss Relief

Similar to EIS loss relief, net loss relief allows investors to combine income tax relief with loss relief for enhanced financial protection.

For instance, if an investor places £100,000 into an EIS investment opportunity and the investment unfortunately results in a total loss, they can claim both the 30% income tax relief and the loss relief. With a 45% income tax rate, the investor could claim £30,000 from income tax relief and an additional £31,500 from loss relief.

This means the net loss would be reduced to £38,500, representing a 38.5% loss on the original investment, offering a significant cushion in the rare event that the investment does not perform as expected.

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Calculating EIS (FAQ)

What factors does the EIS calculator consider to estimate my potential tax reliefs?

The EIS calculator takes into account several key financial factors: initial investment;  expected return; existing capital gains; personal capital gains tax rate and income tax rate.  This helps to provide an estimate of the tax reliefs you may receive on an EIS-qualifying investment. By incorporating variables such as the amount of your investment, your current tax bracket, and the anticipated growth of the investment, the calculator produces a detailed projection of potential benefits.

These factors allow the calculator to tailor its results to your unique financial situation, giving you a realistic preview of what to expect from an EIS investment in terms of tax savings and returns.

How does the EIS calculator help with planning for potential losses?

Planning for potential losses is a crucial aspect of any investment, and the EIS calculator is equipped with specific functions designed to aid in this area. By including EIS Loss Relief and Net Loss calculations, the calculator shows how much of an investment could be recovered in rare cases where the investment doesn’t perform as expected.

For instance, through loss relief, you may be able to claim a portion of the investment loss against your income tax, which can soften the impact significantly. By understanding these loss-relief benefits, you can make more informed decisions about your risk exposure and gain confidence that potential losses are mitigated to some extent through these tax relief measures.

Can the EIS calculator show the benefits of capital gains deferral?

Yes, EIS calculators include an analysis of Capital Gains Tax (CGT) deferral to give you a complete picture of your potential tax advantages. If you have a capital gain from a recent sale, reinvesting this gain in an EIS-eligible investment allows you to continually defer the CGT.

Our calculator incorporates this deferral benefit, highlighting how much tax you can postpone and for how long. This feature provides added flexibility in managing tax obligations, as deferring CGT can help you retain more funds for reinvestment while potentially profiting from the investment itself. With this deferral strategy, you gain both the immediate tax advantage and the prospect of growing your capital in the longer term.

How accurate are the results provided by the EIS calculator?

Calculating EIS Benefits involves well-established formulas to calculate potential tax reliefs and returns based on the inputs provided, but the final outcomes depend on actual investment performance and changes in tax policies.

 It's essential to use the calculator’s results as an informed estimate rather than a guarantee, helping you plan effectively while remaining aware of possible variations in real-life outcomes.

Is the EIS calculator suitable for all types of investors?

Our enterprise investment scheme calculator is particularly beneficial for investors in higher tax brackets who stand to gain the most from the substantial tax reliefs offered by EIS. However, it’s suitable for anyone interested in EIS investments, as it tailors results to a wide range of financial profiles.

Whether you are new to EIS investments or an experienced investor, the calculator can adapt to your tax bracket, investment amount, and growth projections, making it accessible to a broad audience. This flexibility makes it a valuable tool for investors who wish to align their financial strategies with long-term goals, regardless of their level of experience or current tax status.

Minimise Risk. Maximise Returns.

Don't invest unless you're prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong.
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Risk Summary

Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.

What are the key risks?

  • You could lose all the money you invest
  • Most investments are shares in start-up businesses or bonds issued by them. Investors in these shares or bonds often lose 100% of the money they invested, as most start-up businesses fail.
  • Checks on the businesses you are investing in, such as how well they are expected to perform, may not have been carried out by the platform you are investing through. You should do your own research before investing.

You won't get your money back quickly

  • Even if the business you invest in is successful, it will likely take several years to get your money back.
  • The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common.
  • Start-up businesses very rarely pay you back through dividends. You should not expect to get your money back this way.
  • Some platforms may give you the opportunity to sell your investment early through a 'secondary market' or 'bulletin board', but there is no guarantee you will find a buyer at the price you are willing to sell.

Don't put all your eggs in one basket

  • Putting all your money into a single business or type of investment for example, is risky. Spreading your money across different investments makes you less dependent on any one to do well. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Learn more here.

The value of your investment can be reduced

  • If your investment is shares, the percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares.
  • These new shares could have additional rights that your shares don't have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment.

You are unlikely to be protected if something goes wrong

  • Protection from the Financial Services Compensation Scheme (FSCS), in relation to claims against failed regulated firms, does not cover poor investment performance. Try the FSCS investment protection checker.
  • Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated platform, FOS may be able to consider it. Learn more about FOS protection here.

If you are interested in learning more about how to protect yourself, visit the FCA's website here.

For further information about investment-based crowdfunding, visit the crowdfunding section of the FCA's website here.
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Growth Capital Ventures (GCV) is backed by funds managed by Maven Capital Partners, one of the UK’s leading private equity and alternative asset managers.