Tax Rates & Allowances

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Investments

Seed Enterprise Investment Scheme (SEIS)

SEIS was introduced to encourage people to invest in companies that have just started trading by offering tax reliefs to investors that buy shares in the company.

The table below shows the income and capital gains tax reliefs that apply:

Tax Year	2013/14 to 2022/23	2023/24	2024/25
Rate of income tax relief	50%	50%	50%
Maximum investment qualifying for income tax relief	£100,000	£200,000	£100,000
Gains exempt from CGT relief on reinvestment in SEIS shares:	50%	50%	50%

 

Enterprise Investment Scheme (EIS)

EIS is available to companies that are looking to grow by offering tax reliefs to investors that buy new shares in the company.

The table below shows the income tax reliefs that apply:

EIS	2012/13 to 2017	From 2018/19
Rate of income tax relief	30%	30%
Maximum investment qualifying for income tax relief	£1,000,000	£2,000,000

To qualify for the maximum of £2m, at least £1 million of that is invested in knowledge-intensive companies.

A gain made on the disposal of EIS shares after holding them for at least three years is exempt from CGT to the extent that full income tax relief has been claimed, and not withdrawn, on the investment.

A gain made on the disposal of EIS shares after holding them for at least three years is exempt from CGT to the extent that full income tax relief has been claimed, and not withdrawn, on the investment.

Where the disposal proceeds from any capital gain are reinvested in a subscription for EIS shares in the four-year period that starts one year before the date of the gain, all or part of the original gain can be deferred. The deferred gain is brought back into charge on the disposal of the EIS shares or on a breach of the investment conditions

Social Investment Tax Relief (SITR)

 

This relief was withdrawn on 5 April 2023.

The table below shows the income and capital gains tax reliefs that apply:

SITR	2014/15 to 2022/23
Rate of income tax relief	30%
Maximum investment qualifying for income tax relief	£1,000,000

 

Venture Capital Trusts (VCTs)

VCTs were introduced to encourage people to invest in companies that have just started trading by offering tax reliefs to investors that buy shares in the company.

The figures below shows the income and capital gains tax reliefs that apply:

VCT
Rate of income tax relief	30%
VCT
Maximum investment qualifying for income tax relief	£200,000	Individual shareholders must be aged 18 or over. The relief applies if their shares are held for at least five years.

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