How to claim back up to 30% of the tax you’ve just paid

Archived article

Archived article: please remember tax and investment rules and circumstances can change over time. This article reflects our views at the time of publication.

Have you just completed your tax return? Most think once the payment is made, there is no way back. 

That’s not quite true. You could still claim up to 30% of that tax back by investing in an EIS. 

Get back up to 30p of every £1 you’ve paid

For every £1 you invest, you could get back up to 30p in income tax relief. You can offset that 30p against the current year's tax bill (2016/17). But EIS give you an additional benefit: you can choose to ‘carry back’. This means you can offset the 30p against tax paid for the 2015/16 tax year – in other words you can claim back tax you’ve already paid. 

The main requirement is that your money is invested and deployed before 5 April 2017. Please remember: tax benefits depend on circumstances and tax rules may change. Capital is at risk. 

So which EIS aim to invest before 5 April 2017?

There aren’t many. Three we particularly like are Seneca Managed Storage EIS fund, Silver Lining Screen EIS fund and Deepbridge Technology Growth EIS. Read more below. 

1. Seneca Managed Storage EIS fund

  • Raising £10 million to develop four managed storage sites
  • Asset-backed storage facilities with predictable underlying trading revenues in a steady but growing sector
  • Advance Assurance received
  • No debt
  • Proven management team – it already operates seven profitable managed storage facilities
  • Good downside protection
  • EIS advance assurance received
  • Active M&A market driving up valuations
  • Minimum investment £15,000

2. Silver Lining Screen EIS fund

  • Invests in lower-budget/lower-risk TV production projects
  • Sector opportunity: high demand/short supply
  • Proven team with track-record of delivering profitable productions
  • For every £1 invested, 75p to 85p typically supported by contractual revenues and film production tax credits
  • Target returns of 105% to 135% (not guaranteed)
  • EIS advance assurance received
  • Exit to cash targeted for 3.5–4.5 years
  • Minimum investment £10,000

3. Deepbridge Technology Growth EIS 

  • Technology-focused EIS fund
  • You know, and can choose, in which three companies your money is invested
  • Experienced management, who are required to invest their own money in the offer
  • Invests in tax year 2016/17, allowing investors to offset this year’s or last year’s tax bill
  • Minimum investment £10,000 
Read more on Deepbridge Technology Growth EIS »

What could you do next?

If you want to get back some of the tax you’ve already paid for the 2015/16 tax year you must invest before 5 April 2017 in a qualifying EIS. It may be wise not to delay. We’re seeing many opportunities fill up well before their official deadline. 

Wealth Club aims to make it easier for experienced investors to find information on – and apply for – tax-efficient investments. You should base your investment decision on the provider's documents and ensure you have read and fully understand them before investing. This review is a marketing communication. It is not advice or a personal or research recommendation to buy the investment mentioned. It does not satisfy legal requirements promoting investment research independence and is thus not subject to prohibitions on dealing ahead of its dissemination.