EIS Calculator

Enter your figures to work out the benefits.

In the Tax Year ending 5 April 2017:

Please complete your income information in the relevant fields below:

£
£
£
£
£
If you do not invest in a EIS If you invest in a EIS
Estimated total income tax and capital gains tax to pay £54,916 £0
Estimated take home money £145,084 £100,000
Amount invested £0 £100,000

Your EIS investment is costing you if it fails: £17,038

Your EIS investment is costing you if it succeeds: £45,084

Potential Return on net Investment
(after tax reliefs)

Forecast valuation based on:

%

Year 1

£
Forecast earnings per share (EPS) £0.000
Forecast dividend per share £0.000
Estimated total dividends accumulated £0
Estimated potential capital gains £0
Dividends plus Capital Gains £0
Total return on net investment 0.00%

Year 2

£
Forecast earnings per share (EPS) £0.002
Forecast dividend per share £0.000
Estimated total dividends accumulated £152
Estimated potential capital gains £0
Dividends plus Capital Gains £152
Total return on net investment 0.34%

Year 3

£
Forecast earnings per share (EPS) £0.032
Forecast dividend per share £0.006
Estimated total dividends accumulated £3,374
Estimated potential capital gains £35,472
Dividends plus Capital Gains £38,847
Total return on net investment 86.16%

Year 4

£
Forecast earnings per share (EPS) £0.115
Forecast dividend per share £0.023
Estimated total dividends accumulated £14,848
Estimated potential capital gains £241,753
Dividends plus Capital Gains £256,601
Total return on net investment 569.16%

Year 5

£
Forecast earnings per share (EPS) £0.359
Forecast dividend per share £0.072
Estimated total dividends accumulated £50,794
Estimated potential capital gains £853,570
Dividends plus Capital Gains £904,364
Total return on net investment 2,005.95%

Your investment break even points

In dividends receipts Year 5
In capital gains by selling your share Year 4
In dividends and capital gains added together Year 4

About

EIS or the Seed Enterprise Investment Scheme, was introduced in the 2012 Budget. In essence, if a UK company qualifies for EIS, investors will receive 50% of the sum they invest as a tax credit, and for the fiscal year, should they invest capital gains realised during the year, them those gains will be relieved from capital gains tax (CGT), thus saving the investor potentially another 28% in reliefs.

As well as the reliefs mentioned above, should the investment fail, then loss relief can be claimed on the 50% of the investment after the initial tax relief. If CGT relief has also been claimed, there is the potential that the net cost to the investor could be zero.

For seed investors and higher band tax payers, this is a very attractive scheme. There is a limit of £100,000 of investment by any one individual in any one year, and the maximum any qualifying company can receive is £150,000 in total under the scheme. Should the investee company seek funds in excess of £150,000, then it will be able to do so under the EIS scheme (Enterprise Investment Scheme), provide EIS rules have been complied with. The full rules, including excluded businesses are on the HMRC website.

At FastR™ Property Ltd we became interested in EIS as we as a company qualify. As yet the scheme is not broadly known, so we created our own EIS calculator for investors to use. We believe it is a very good guide to how an EIS investment will impact on an individual tax payer, and if that tax payer can input data on his proposed investment, he can get an indication of estimated returns on his investment and net cash flow in a given tax year in which he/she makes the investment.

It cannot be 100% accurate as each tax payer will have his own particular circumstances, but the calculator takes into account different tax bands, and personal allowances for both income and CGT.

FastR™ Property Limited has created a 360° cloud based property solution and we intend to launch our platform in the next three months after raising the funds we require.

This is not tax advice and nor an investment advice, just estimation to help make an informed decision. Please consult with an appropriate adviser if you decide to make an investment. FastR™ Property Limited is registered in England and Wales no. 10620899. E-mail: info@fastrproperty.com. Telephone: +44 (0)1883 344342.