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2018 Budget - Investment Reliefs |
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Annual investment limits
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2018/19 |
2017/18 |
| Individual Savings Account (ISA) |
| - Overall limit |
£20,000 |
£15,240 |
| - Lifetime ISA (LISA) |
4,000 |
4,000 |
| - Junior ISA |
4,260 |
4,128 |
| Enterprise Investment Scheme (EIS) |
2,000,000 |
1,000,000 |
| Seed EIS (SEIS) |
100,000 |
100,000 |
| Venture Capital Trust (VCT) |
200,000 |
200,000 |
| Social Investment Tax Relief (SITR) |
1,000,000 |
1,000,000 |
Notes
- 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.
- 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.
- 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- withdrawn after being diagnosed with a terminal illness.
- If the money in a LISA is withdrawn in other circumstances, the bonus will be clawed back with an additional 5% charge.
- Junior ISA, with an investment limit of £4,260 (2017/18: £4,128), is available to those aged under 18 and who don't have a Child Trust Fund account. When the holder reaches age 18, their junior ISA becomes an adult ISA.
- For 2018/19, amounts invested above £1m in the EIS must be in 'knowledge-intensive' companies.
- EIS, VCT and SITR investments attract 30% Income Tax relief, but those schemes all have different qualifying rules.
- SEIS investments attract 50% Income Tax relief.
- Where the disposal proceeds from any capital gain are reinvested under EIS or SITR 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.
- Gains reinvested under SEIS, within the same tax year, up to the investment limit attract 50% exemption from CGT.
- Investments made under EIS, SEIS and SITR can be carried back to be treated as made in the previous tax year, subject to the investment limits.
- Disposals of investments acquired under EIS, SEIS, SITR or VCT are exempt from CGT if investment conditions have not been broken.
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