How to claim EIS relief, step by step

You claim EIS income tax relief on your self assessment return, or by post, once the company has sent you an EIS3 certificate. You cannot claim at the point of investment, because the company can only issue EIS3 after four months of qualifying trade and HMRC authorisation.

The sequence matters, and it catches people out. Investing in an EIS round does not give you anything to claim with. The paperwork comes later, from the company. The wider scheme is covered in the EIS guides hub.

Step by step on the self assessment return

1. 01Check the EIS3 certificate. You need the company's name, the amount subscribed, the date the shares were issued, the HMRC office reference shown on the certificate and the unique investment reference.
2. 02Include the 'Additional information' pages (SA101) with your return. EIS subscriptions are entered in the 'Other tax reliefs' section of those pages, not on the main SA100. Box numbering can change between tax years, so follow the labelling on the version of the form for the year you are filing.
3. 03Enter the total amount subscribed for EIS shares that you want relieved in that tax year. Enter the amount subscribed, not the 30% relief; HMRC calculates the relief.
4. 04If you are filing online, the EIS entry appears once you tick that you want to claim other tax reliefs when tailoring the return.
5. 05Give the company details in the 'Any other information' box: name, HMRC reference and the amount subscribed for each company. Where several companies are involved, list each one separately.
6. 06Keep the EIS3 certificates. You do not send them with an online return, but HMRC can ask for them and you need them if the claim is checked.

Claiming for an earlier tax year

There are two separate situations, and they are often confused.

• Carry back: you elect to treat the subscription as made in the previous tax year and set the relief against that year's income tax. The election is made on the claim itself, and the previous year's £1 million limit applies.
• A late claim for the year of investment: if the EIS3 arrives after you have already filed, you can amend that return within the normal amendment window, or make the claim using the form on the certificate.

In both cases the outer time limit is the same: the claim must generally be made within five years of the 31 January following the tax year in which the shares were issued. EIS carry back covers the election in more detail.

If you do not file a self assessment return

You can claim by completing the claim form on pages three and four of the EIS3 certificate and sending it to HMRC. Relief can be given by adjusting your PAYE tax code for the current year, or as a repayment for an earlier year.

Other EIS claims

• Deferral relief on a gain reinvested into EIS shares is claimed using the claim form attached to the EIS3 certificate.
• Capital gains exemption on the disposal of EIS shares is reported through the capital gains pages of your return.
• Loss relief, where the company fails, is claimed against income or gains in the relevant year.

Common questions

When can I claim EIS relief?

Once your EIS3 certificate arrives, which is usually at least four months after the shares are issued and often longer, because the company has to apply to HMRC first.

Do I need to send the EIS3 to HMRC?

Not with an online self assessment return. If you are claiming by post using the form on the certificate, you send the certificate itself. Either way, keep a copy.

How long does the refund take?

That depends on how you claim. Relief through a return reduces the tax due on that return. A postal claim for an earlier year is processed by HMRC as a repayment or a tax code adjustment, and timings vary.

What if I lost the EIS3 certificate?

Ask the company for a duplicate. HMRC does not issue EIS3 certificates to investors; the company does, under its EIS2 authorisation.

HMRC's helpsheets HS341 and HS297 set out the income tax and capital gains positions respectively. The SEIS equivalent of this guide is how to claim SEIS relief.