Tax Reliefs For Individuals
Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme (EIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. Individuals are entitled to relief on investments in certain unquoted trading companies through EIS. A junior version of EIS the SEIS is also available.
| Maximum investment per annum | £1,000,000 |
| Additional investment limit where investing in knowledge-intensive companies | £2,000,000 |
| Income tax relief | 30% |
| CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be deferred by making an EIS investment.
Seed Enterprise Investment Scheme (SEIS)
The Seed Enterprise Investment Scheme (SEIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. SEIS is a junior version of EIS.
| Maximum investment per annum | £200,000* |
| Income tax relief | 50% |
| CGT treatment on disposal if held for 3 years | Exempt |
An individual who makes a capital gain on another asset and uses the amount of the gain to make a SEIS investment will not pay tax on 50% of the gain (subject to certain conditions).
Capital gains from the disposal of other assets may be exempt up to £100,000* per annum by making an SEIS investment.
*Limits subject to Parliamentary approval.
Social Investment Relief (SIR)
Social Investment Relief (SIR) was designed to encourage private individuals to invest in social enterprises including charities.
SIR closed to any new investments from 6 April 2023.
Venture Capital Trusts (VCTs)
Venture Capital Trusts (VCTs) are designed to encourage private individuals to invest in smaller high-risk unquoted trading companies. VCTs operate by indirect investment through a mediated fund. In effect they are very like the investment trusts that are obtainable on the stock exchange, albeit in a high-risk environment. Individuals are entitled to relief on investments in VCTs.
| Maximum investment per annum | £200,000 |
| Income tax relief | 30% |
| Dividend income | Exempt |
| Capital gains treatment on disposal | Exempt |
Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme (EIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. Individuals are entitled to relief on investments in certain unquoted trading companies through EIS. A junior version of EIS the SEIS is also available.
| Maximum investment per annum | £1,000,000 |
| Additional investment limit where investing in knowledge-intensive companies | £2,000,000 |
| Income tax relief | 30% |
| CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be deferred by making an EIS investment.
Seed Enterprise Investment Scheme (SEIS)
The Seed Enterprise Investment Scheme (SEIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. SEIS is a junior version of EIS.
| Maximum investment per annum | £200,000* |
| Income tax relief | 50% |
| CGT treatment on disposal if held for 3 years | Exempt |
An individual who makes a capital gain on another asset and uses the amount of the gain to make a SEIS investment will not pay tax on 50% of the gain (subject to certain conditions).
Capital gains from the disposal of other assets may be exempt up to £100,000* per annum by making an SEIS investment.
*Limits subject to Parliamentary approval.
Social Investment Relief (SIR)
Social Investment Relief (SIR) was designed to encourage private individuals to invest in social enterprises including charities.
SIR closed to any new investments from 6 April 2023.
Venture Capital Trusts (VCTs)
Venture Capital Trusts (VCTs) are designed to encourage private individuals to invest in smaller high-risk unquoted trading companies. VCTs operate by indirect investment through a mediated fund. In effect they are very like the investment trusts that are obtainable on the stock exchange, albeit in a high-risk environment. Individuals are entitled to relief on investments in VCTs.
| Maximum investment per annum | £200,000 |
| Income tax relief | 30% |
| Dividend income | Exempt |
| Capital gains treatment on disposal | Exempt |
Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme (EIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. Individuals are entitled to relief on investments in certain unquoted trading companies through EIS. A junior version of EIS the SEIS is also available.
| Maximum investment per annum | £1,000,000 |
| Additional investment limit where investing in knowledge-intensive companies | £1,000,000 |
| Income tax relief | 30% |
| CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be deferred by making an EIS investment.
Seed Enterprise Investment Scheme (SEIS)
The Seed Enterprise Investment Scheme (SEIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. SEIS is a junior version of EIS.
| Maximum investment per annum | £100,000 |
| Income tax relief | 50% |
| CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be exempt up to £50,000 per annum by making an SEIS investment.
Social Investment Relief (SIR)
Social Investment Relief (SIR) is designed to encourage private individuals to invest in social enterprises including charities. Individuals are entitled to relief on their investment:
| Maximum investment per annum | £1,000,000 |
| Income tax relief | 30% |
| CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be deferred by making a SIR investment.
Venture Capital Trusts (VCTs)
Venture Capital Trusts (VCTs) are designed to encourage private individuals to invest in smaller high-risk unquoted trading companies. VCTs operate by indirect investment through a mediated fund. In effect they are very like the investment trusts that are obtainable on the stock exchange, albeit in a high-risk environment. Individuals are entitled to relief on investments in VCTs.
| Maximum investment per annum | £200,000 |
| Income tax relief | 30% |
| Dividend income | Exempt |
| Capital gains treatment on disposal | Exempt |
All reliefs are subject to detailed conditions being met.
Enterprise Investment Scheme (EIS)
The Enterprise Investment Scheme (EIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. Individuals are entitled to relief on investments in certain unquoted trading companies through EIS. A junior version of EIS the SEIS is also available.
| Maximum investment per annum | £1,000,000 |
| Additional investment limit where investing in knowledge-intensive companies | £1,000,000 |
| Income tax relief | 30% |
| CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be deferred by making an EIS investment.
Seed Enterprise Investment Scheme (SEIS)
The Seed Enterprise Investment Scheme (SEIS) provides tax relief for individuals prepared to invest in new and growing companies. Investors can obtain generous income tax and capital gains tax (CGT) breaks for their investment and companies can use the relief to attract additional investment to develop their business. SEIS is a junior version of EIS.
| Maximum investment per annum | £100,000 |
| Income tax relief | 50% |
| CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be exempt up to £50,000 per annum by making an SEIS investment.
Social Investment Relief (SIR)
Social Investment Relief (SIR) is designed to encourage private individuals to invest in social enterprises including charities. Individuals are entitled to relief on their investment:
| Maximum investment per annum | £1,000,000 |
| Income tax relief | 30% |
| CGT treatment on disposal if held for 3 years | Exempt |
Capital gains from the disposal of other assets may be deferred by making a SIR investment.
Venture Capital Trusts (VCTs)
Venture Capital Trusts (VCTs) are designed to encourage private individuals to invest in smaller high-risk unquoted trading companies. VCTs operate by indirect investment through a mediated fund. In effect they are very like the investment trusts that are obtainable on the stock exchange, albeit in a high-risk environment. Individuals are entitled to relief on investments in VCTs.
| Maximum investment per annum | £200,000 |
| Income tax relief | 30% |
| Dividend income | Exempt |
| Capital gains treatment on disposal | Exempt |
(All reliefs are subject to detailed conditions being met.)
Tax Rates & Allowances
- Introduction
- Capital Allowances – Plant And Machinery
- Capital Gains Tax (CGT)
- Car Benefits
- Car Fuel Benefit
- Cars – Advisory Fuel Rates For Company Cars
- Child Benefit
- Corporation Tax Rates
- Employee’s Statutory Payments
- Income Tax Allowances
- Income Tax Rates – Across the UK
- Income Tax Rates – Scotland
- Income Tax Rates – Wales
- Individual Savings Account (ISA)
- Inheritance Tax (IHT)
- Land and Buildings Transaction Tax
- Land Transaction Tax
- Mileage Allowance Payments (MAPS) For Employees
- Minimum Wage
- National Insurance Contributions (NIC) – Rates And Allowances
- Pensions Automatic Enrolment
- Pensions – Tax Relief On Pension Contributions
- Property Allowance
- Self Assessment – Key Dates
- Stamp Duty
- Stamp Duty Land Tax (SDLT)
- State Pensions
- Tax Reliefs For Individuals
- Trade Allowance
- Van Benefit
- VAT
- Vat Fuel Scale Charges
- Vehicle Excise Duty (VED) – Passenger Cars