EIS Tax Relief Accountant
- Chartered Certified Accountants
- Fixed Fee Services
- Tax Liability Minimisation
What is an EIS Investment and the Relief Available?
The Enterprise Investment Scheme (EIS) is a UK government initiative designed to encourage investment in early-stage, high-risk companies by offering generous tax reliefs. When you invest in qualifying EIS shares, you can benefit from several tax advantages. These include Income Tax relief, which allows you to deduct a percentage of your investment from your income tax bill; Capital Gains Tax deferral relief, which lets you defer CGT on gains from other assets by reinvesting them into EIS shares; and Capital Gains Tax exemption on profits made from the EIS shares themselves, provided the shares are held for at least three years. Additional reliefs may also apply in certain circumstances, such as loss relief, which can reduce the impact if the investment doesn’t perform as expected.
Benefits of Investing in EIS, SEIS, and VCT Shares
Here are the key benefits:
- Income Tax Relief – Reduce your income tax bill by claiming a percentage of your investment against your tax liability.
- Capital Gains Tax Relief – Defer or eliminate capital gains tax on qualifying investments.
- Tax-Free Growth – Profits on qualifying shares may be exempt from Capital Gains Tax if held for the required period.
- Loss Relief – If the investment performs poorly, you can offset losses against other income or gains.
- Portfolio Diversification – Access to high-growth, early-stage companies or innovative sectors.
- Support for UK Growth Companies – Your investment helps fund start-ups and small businesses, contributing to economic growth.
Specialist EIS Tax Relief Accountant
At Zahtax Accountants, we specialise in helping investors claim EIS, SEIS, and VCT tax reliefs efficiently and accurately. Our expert team acts as your dedicated EIS Tax Relief Accountant, guiding you through the entire process—from verifying eligibility and calculating the relief available to submitting claims to HMRC. Whether you are looking to reduce your income tax liability, defer capital gains, or claim tax-free growth on your investments, we ensure all paperwork is correctly completed and deadlines are met. With Zahtax, you can maximise your tax benefits while remaining fully compliant with HMRC rules, making the most of your investment in high-growth companies.
Tax Reliefs on EIS, SEIS and VCT Investments
Scheme
Income Tax Relief
Capital Gains Tax Benefit
Other Key Benefits
EIS
30% of investment
CGT deferral on other gains; CGT-free if held ≥ 3 years
Loss relief; inheritance tax relief in some cases
SEIS
50% of investment
50% CGT reinvestment relief; CGT-free if held ≥ 3 years
Loss relief
VCT
30% of investment
CGT-free on disposal
Tax-free dividends; must hold ≥ 5 years
Notes:
- The reliefs are subject to eligibility conditions and annual investment limits.
- EIS and SEIS are primarily aimed at investing in early-stage, high-risk companies, while VCTs provide a more diversified portfolio via listed venture funds.
Why Choose Zahtax for Your Tax Reliefs
- Expert Guidance – Specialist advice on EIS, SEIS, VCT, and other tax reliefs.
- Accurate Calculations – Ensure all eligible reliefs are correctly applied to reduce tax liability.
- Full HMRC Compliance – We handle submissions and reporting, avoiding errors and penalties.
- Strategic Tax Planning – Optimise timing and structure of investments for maximum relief.
- Tailored Advice – Solutions for both UK residents and overseas investors.
- Peace of Mind – Professional handling of your tax affairs from start to finish.
How Zahtax Can Help You with Tax Relief on Investments
- Expert Advice – Guidance on EIS, SEIS, VCT, and other investment tax reliefs.
- Eligibility Assessment – Ensure your investments qualify for the maximum relief.
- Accurate Calculations – Calculate the correct amount of tax relief and potential refunds.
- HMRC Submissions – Handle all paperwork and submissions on your behalf.
- Strategic Planning – Advise on timing and structuring investments to reduce overall tax liability.
- Support for UK and Overseas Investors – Tailored solutions for residents and non-residents.
- Peace of Mind – Professional management of your investment tax relief claims from start to finish.
Frequently Asked Questions
Get answers to common questions about sole trader tax requirements and our services.
What is EIS Tax Relief?
The Enterprise Investment Scheme (EIS) is a UK government initiative that encourages investment in smaller, high-growth companies by offering generous tax reliefs to investors. An EIS Tax Relief specialist can guide you through the rules and ensure you take full advantage of the scheme.
How much Income Tax relief can I claim under EIS?
You can claim up to 30% Income Tax relief on investments of up to £1 million each tax year (or £2 million if at least £1 million is invested in knowledge-intensive companies). An experienced EIS Tax Accountant can advise you on how to structure your investment to maximise this relief.
What are the Capital Gains Tax (CGT) benefits of EIS?
If you hold your EIS investment for at least three years, any gains made when you sell the shares are exempt from Capital Gains Tax. Additionally, existing capital gains can be deferred if reinvested into an EIS-qualifying company.
How long must I hold an EIS investment to keep the tax reliefs?
You need to hold your EIS shares for at least three years to retain the Income Tax and CGT reliefs. Selling earlier can lead to reliefs being withdrawn by HMRC.
What happens if the company fails?
If the EIS company fails, you can claim Loss Relief, which allows you to offset part of your loss against Income Tax or Capital Gains Tax. An EIS Tax Relief specialist can help you calculate this and ensure you make the correct claim.
Who can invest under EIS?
Any UK taxpayer can invest, provided they are not connected to the business (e.g., an employee or controlling shareholder). There are also limits on shareholding to qualify for relief.
How do I claim EIS Tax Relief?
You need an EIS3 certificate from the company before you can claim through your Self Assessment tax return. A professional EIS Tax Accountant will ensure the claim is completed accurately and efficiently with HMRC.