What is the enterprise investment scheme tax relief rate?
Answered 17 March 2026
Enterprise Investment Scheme (EIS) Tax Relief Rate
What the law says
The EIS income tax relief rate is 30%, as set out in ITA 2007, s. 158(2A). Specifically, the provision states:
"In this Part 'the EIS rate' means 30%."
The relief takes the form of a tax reduction (not a deduction from income) equal to 30% of the amount subscribed for qualifying shares, subject to an annual allowable amount cap of £1 million (or up to £2 million where the shares are in a knowledge-intensive company).
The 30% rate was introduced by amending s. 158(2A) of ITA 2007 (substituting the previous rate of 20%), with effect from the tax year 2011-12 onwards.
Historical note: For EIS relief obtained for the tax year 2007-08 or earlier, the applicable rate (the "EIS original rate") is read as 20%.
HMRC guidance / practice
HMRC confirms that EIS relief is given at 30% and is administered using the EIS coding descriptor, after the relief has been calculated in terms of tax and converted to an amount to be included in the PAYE code.
HMRC also notes that the EIS rate of 30% differs from the SEIS rate of 50% (available for shares acquired on or after 6 April 2012), and it is important that the two schemes are not confused.
Summary
| Scheme | Rate | Applicable from |
|---|---|---|
| EIS (current) | 30% | Tax year 2011-12 onwards |
| EIS (historical) | 20% | Up to tax year 2007-08 |
| SEIS | 50% | Shares issued on/after 6 April 2012 |
Citation sources
Relief is given at 50% of the cost of the qualifying shares acquired on or after 6 April 2012 and is given in terms of tax. The rate differs from that available under the existing Enterprise Investment Scheme and Social Investment Tax Relief (SITR) so it is important that the schemes are not confused.
Part 2 Income tax, corporation tax and capital gains tax Exemptions and reliefs Enterprise investment scheme: amount of relief 42 1 Part 5 of ITA 2007 (enterprise investment scheme) is amended in accordance with subsections (2) to (4). 2 In section 158 (form and amount of EIS relief), in subsection (2A) for “20%” substitute “ 30% ” . 3 In the following provisions for “EIS rate” substitute “ EIS original rate ” a section 209(3); b section 210(1)(b); c section 213(2); d section 220(1)(b); e sectio
Part 5 Enterprise investment scheme Chapter 1 Introduction EIS relief Form and amount of EIS relief 158 1 If an individual— a is eligible for EIS relief in respect of any amount subscribed for shares, and b makes a claim in respect of all or some of the shares included in the issue, the individual is entitled to a tax reduction for the tax year in which the shares were issued (“ the current year ”). This is subject to the provisions of this Part. 2 The amount of the tax reduction to which the in
Note: The rate at which EIS relief is due is 30% and is given using the EIS coding descriptor after the relief due has been calculated in terms of tax and converted to an amount to be included in the code. To calculate the amount of relief due, see PAYE10045 Enter the full subscribed qualifying shares Enter the coding allowance under Enterprise Investment Scheme on the Allowances screen