Claiming Tax Reliefs (EIS)

Investing in the Enterprise Investment Scheme (EIS) allows you to benefit from up to 30% in income tax relief, which could reach as high as £600,000 annually. This amount might be even greater if you invest in Knowledge Intensive Companies. You have the option to apply this tax relief to your income tax bill for the current year or the previous year through a 'carry back' process.

So, how do you actually claim this tax relief?

We provide a straightforward guide below, that you can download to help you get started. Please note, this is for informational purposes only and should not be considered tax advice or a personal recommendation.

What do you need to gather to claim EIS tax relief?

Typically, you will claim this relief when filling out your tax return, requiring specific details found in your EIS certificates. These certificates are usually sent to you a few months post-investment.

If you invested in a standard EIS fund, you will generally receive an EIS3 certificate for each company within the fund. For investments in a Knowledge Intensive Approved EIS fund, the fund manager provides a single EIS5 certificate.

These certificates will detail:

• The name of the company where your investment was made

• The amount invested, eligible for tax relief

• The issuance date of the shares, which often differs from the investment date

• The relevant HMRC office name and reference

Your next steps depend on whether your tax return is submitted by mail or online. There are alternative methods if you prefer not to claim relief for the same tax year as your return or if you don’t regularly file a tax return.

You can find a full breakdown in our guide (click here). 

You can also find further information on Gov.uk website by clicking here.