Investment reliefs 2025/26…
Annual investment limits 2025/26
Individual Savings Account (ISA)
– Overall Limit £20,000
– Lifetime ISA (LISA) £4,000
– Junior ISA £9,000
Enterprise Investment Scheme (EIS) £2,000,000
Seed EIS (SEIS) £200,000
Venture Capital Trust (VCT) £200,000

Notes

1. ISA investors can invest in any combination of cash or shares, up to the
   overall limits shown. The £4,000 LISA limit is part of the general ISA limit of
   £20,000, not additional to it.
2. Taxpayers aged between 18 and 40 may open a LISA and invest up to £4,000 each year, which qualifies for a 25% Government bonus on amounts invested up to the age of 50.
3. This benefit is retained as long as the money is either:
   – put towards a first home costing up to £450,000, or
   – kept in the account until reaching age 60, or
   – withdrawn after being diagnosed with a terminal illness when having
   – less than 12 months to live.
4. If the money in a LISA is withdrawn in other circumstances, the bonus
   is clawed back, with an additional 5% charge (i.e. total charge of 25% of
   amount withdrawn).
5. Junior ISAs are available to those aged under 18 and who don’t have a
   Child Trust Fund account. At age 18, their junior ISA becomes an adult ISA.
6. EIS and VCT investments attract 30% Income Tax relief. SEIS investments
   attract 50% Income Tax relief.
7. EIS and SEIS shares must be held for at least 3 years to keep the income
   tax relief. VCT shares must be held for a minimum of 5 years.
8. Where the disposal proceeds from any capital gain are reinvested under EIS 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.
9. Gains reinvested under SEIS, within the same tax year, up to the investment limit attract 50% exemption from CGT.
10. Investments made under EIS and SEIS can be carried back to be treated as
    made in the previous tax year, subject to the investment limits.
11. Gains on disposals of investments acquired under EIS and SEIS and held for at least 3 years are exempt from CGT if investment conditions have not been broken. Disposals of VCT shares are exempt CGT (i.e. no gain or loss arises).
12. Dividends from investments in VCTs do not attract income tax provided the original investment was made within the permitted maximum of £200,000 per year.