HMRC's published guidance on SEIS, EIS, Venture Capital Trusts, Stamp Duty Reserve Tax and Capital Gains Tax — with five years of official rates, the critical April 2026 VCT change, and direct GOV.UK source links throughout.
HMRC's investment tax rules span multiple regimes. This hub guides you to the correct area for your situation, with 2026/27-current rates and GOV.UK source links throughout.
SEIS, EIS and VCT — HMRC's tax-efficient investment programmes with income tax relief, CGT exemption and loss relief. Critical April 2026 changes apply to VCTs.
SEIS 50% · EIS 30% · VCT 20% from Apr 202650% and 30% income tax relief on early-stage UK company investments. New company limits from 6 April 2026.
Relief cut from 30% to 20% from 6 April 2026. Tax-free dividends and CGT exemption unchanged.
18%/24% from Oct 2024. £3,000 annual exempt amount. BADR at 14% (2025/26) rising to 18% (2026/27).
0.5% on electronic share purchases. Automatically collected via CREST. New UK listing relief from Nov 2025.
ISA limits, dividend allowance (£500), Personal Savings Allowance, and interest income — how HMRC taxes investment income.
Ask questions about UK investment tax rules and get answers grounded in HMRC's published guidance — instantly.
Annual allowance, lifetime allowance abolition, pension tax relief rates and drawdown — HMRC's pension tax rules.
2% levy on UK revenues of large digital platforms. HMRC's published DST guidance — scope, thresholds, group accounting and reporting obligations.
2% on qualifying UK revenuesCharged on the chargeable equity and liabilities of UK banking groups. HMRC's published guidance on rates, scope, and the 2025/26 and 2026/27 position.
0.1% standard ratePRT applies to profits from UK and UKCS oil and gas fields. HMRC's guidance on the 0% rate regime, Energy Profits Levy interaction, and historical context.
0% rate (fields from 1993)All figures sourced from HMRC's published guidance on GOV.UK. Rates confirmed as of May 2026.
HMRC's three venture capital schemes encourage investment in smaller UK companies by offering substantial tax reliefs. The Autumn 2025 Budget brought the most significant VCT change in nearly two decades.
Per HMRC's published policy paper (November 2025) and the Finance Act 2026, the income tax relief rate for new VCT subscriptions fell from 30% to 20% from 6 April 2026. EIS and SEIS relief rates are unchanged. The change affects any VCT shares subscribed for on or after 6 April 2026. Subscriptions made before that date retained the 30% rate. Tax-free dividends and CGT exemption on disposal are unaffected.
According to HMRC's guidance on venture capital schemes, the three schemes — SEIS, EIS and VCT — offer investors Income Tax relief, CGT exemptions and loss relief in exchange for investing in qualifying smaller UK companies. The level of relief differs across each scheme to reflect the relative risk profile and stage of the company involved.
| Scheme | IT Relief | Max Investment | Holding Period | CGT Exemption | Sunset |
|---|---|---|---|---|---|
| SEIS | 50% | £200,000/yr (investor) | 3 years | Yes (on qualifying gain) | 2035 |
| EIS | 30% | £1m/yr (£2m incl. KICs) | 3 years | Yes (qualifying shares) | 2035 |
| VCT (pre Apr 2026) | 30% | £200,000/yr | 5 years | Yes (on disposal) | 2035 |
| VCT (from 6 Apr 2026) | 20% ↓ | £200,000/yr | 5 years | Yes (unchanged) | 2035 |
Source: GOV.UK — Venture Capital Schemes & HMRC policy paper (Nov 2025)
Whilst VCT income tax relief was reduced for investors, the Autumn 2025 Budget simultaneously doubled the company-side investment limits for both EIS and VCT from 6 April 2026, allowing more mature companies to qualify. Per HMRC's Venture Capital Schemes Manual (VCM12031):
| Limit | Pre-6 Apr 2026 | From 6 Apr 2026 |
|---|---|---|
| Annual company investment | £5m | £10m |
| Annual limit (KICs) | £10m | £20m |
| Lifetime company limit | £12m | £24m |
| Lifetime limit (KICs) | £20m | £40m |
| Gross assets (before issue) | £15m | £30m |
| Gross assets (after issue) | £16m | £35m |
Source: HMRC VCM12031 — Finance Act 2026
Full HMRC guidance on income tax relief rates, CGT deferral, loss relief, carry-back elections, advance assurance, and the five-year rate history from 2022/23.
Full SEIS & EIS guide → VCTThe 30%→20% relief change explained in full. Tax-free dividends, CGT exemption on disposal, the 5-year holding rule, and how to claim on Self Assessment.
Full VCT guide → All three schemesCompare SEIS, EIS and VCT side by side. Qualifying conditions, investor eligibility, how each scheme interacts with IHT Business Relief, and choosing the right vehicle.
Per HMRC's published guidance, Business Relief operated on fundamentally different terms across the years covered by this guide. For tax years 2022/23 to 2025/26 (before 6 April 2026): 100% Business Relief was available on qualifying assets with no monetary cap — unlimited relief applied where conditions were met. From 6 April 2026 (2026/27 onwards): the first £2.5 million of combined qualifying Business Relief and Agricultural Property Relief assets per individual receives 100% relief; amounts above the cap receive 50% relief (an effective 20% IHT rate). The cap is transferable between spouses and civil partners. VCT shares do not qualify for Business Relief in any year. See GOV.UK: Business Relief for Inheritance Tax.
Capital Gains Tax (CGT) applies when you dispose of investment assets at a profit. According to HMRC's published CGT rates on GOV.UK, the main CGT rates for 2025/26 and 2026/27 are 18% for gains that fall within the basic rate Income Tax band and 24% for gains taxed at higher or additional rate. These rates apply from 30 October 2024 following the Autumn Budget 2024 increase.
Per HMRC's guidance on CGT allowances, the first £3,000 of net capital gains each tax year is exempt from CGT. This allowance cannot be carried forward — use it or lose it. Spouses and civil partners each have their own separate £3,000 exemption.
| Tax Year | Basic Rate | Higher/Add. Rate | Annual Exempt Amount | BADR Rate |
|---|---|---|---|---|
| 2022/23 | 10% | 20% | £12,300 | 10% |
| 2023/24 | 10% | 20% | £6,000 | 10% |
| 2024/25 (pre-30 Oct 24) | 10% | 20% | £3,000 | 10% |
| 2024/25 (from 30 Oct 24) | 18% | 24% | £3,000 | 10%→14% |
| 2025/26 | 18% | 24% | £3,000 | 14% |
| 2026/27 | 18% | 24% | £3,000 | 18% ↑ |
Source: GOV.UK — Capital Gains Tax rates and allowances
Per HMRC's published CGT guidance, the residential property CGT rate changed twice within the single 2024/25 tax year. From 6 April 2024, the higher rate for residential property was cut from 28% to 24% (basic rate remained 18%). Then from 30 October 2024, the CGT main rates for all assets — including residential property — were unified at 18% (basic) and 24% (higher/additional). As a result, 24% was both the product of a reduction on 6 April 2024 and then the retained higher rate after 30 October 2024 for residential property. Readers reviewing 2024/25 returns should take care not to assume the rate was always 24% throughout that year. See HMRC's CGT rates guidance for the full history.
Per HMRC's BADR guidance, the reduced CGT rate for qualifying business disposals (subject to a £1 million lifetime limit) rose from 14% to 18% on 6 April 2026. This means qualifying sole traders, business partners, and directors/employees disposing of shares in their own company pay 18% on qualifying gains from 2026/27. Investors' Relief follows the same rate schedule.
Capital gains on EIS and SEIS shares held for at least three years are wholly exempt from CGT (provided the company remains qualifying). VCT shares are also CGT-exempt on disposal. For all other investment assets — UK and overseas shares, investment funds, cryptocurrency — standard CGT rates apply. See the full Capital Gains Tax guide for disposal reporting, loss relief, and the Section 104 pooling rules for shares.
Stamp Duty Reserve Tax (SDRT) is a tax charged on the electronic purchase of shares and securities in UK companies. Unlike Stamp Duty Land Tax (SDLT), which applies to property, SDRT applies to share transactions. According to HMRC's published guidance on GOV.UK, SDRT is charged at 0.5% of the consideration paid and is automatically collected via CREST — the UK's electronic securities settlement system.
SDRT applies to any electronic share purchase — there is no minimum threshold (unlike stamp duty on paper transfers, which has a £1,000 minimum). AIM shares are exempt from SDRT (the exemption was introduced in April 2014). Holding shares in an ISA or SIPP does not exempt the underlying purchase from SDRT — the 0.5% is collected at the point of settlement, regardless of the wrapper.
Per HMRC's Stamp Taxes on Shares Manual (STSM042600–STSM042650), a new 3-year SDRT exemption applies to companies newly admitted to trading on a UK-regulated market. The exemption took effect from 27 November 2025 and was given permanent statutory effect via the Finance Bill 2025-26. The exemption aims to increase UK equity market liquidity and incentivise new listings. Qualifying companies are flagged as exempt in CREST by their registrar or issuer.
| Transaction Type | Rate | Notes |
|---|---|---|
| Standard electronic share purchase | 0.5% | Automatically collected via CREST |
| AIM share purchase | 0% | Exempt since April 2014 |
| Newly listed UK company (qualifying) | 0% | 3-year exemption from 27 Nov 2025 |
| Transfer to clearance service / depositary receipt | 1.5% | Higher rate applies |
| Paper share transfer (stamp duty, not SDRT) | 0.5% | Only on transfers over £1,000 |
Source: GOV.UK — SDRT & HMRC STSM042600
All figures sourced from HMRC's published guidance on GOV.UK. Always verify on GOV.UK before making decisions.
| Regime / Rate | 2022/23 | 2023/24 | 2024/25 | 2025/26 | 2026/27 |
|---|---|---|---|---|---|
| SEIS IT relief | 50% | 50% | 50% | 50% | 50% |
| SEIS investor limit | £100,000 | £200,000 | £200,000 | £200,000 | £200,000 |
| EIS IT relief | 30% | 30% | 30% | 30% | 30% |
| EIS investor limit | £1m/£2m KIC | £1m/£2m KIC | £1m/£2m KIC | £1m/£2m KIC | £1m/£2m KIC |
| VCT IT relief | 30% | 30% | 30% | 30% | 20% ↓ |
| VCT investor limit | £200,000 | £200,000 | £200,000 | £200,000 | £200,000 |
| CGT main rate (higher) | 20% | 20% | 20%→24% | 24% | 24% |
| CGT annual exempt amount | £12,300 | £6,000 | £3,000 | £3,000 | £3,000 |
| BADR / Entrepreneurs' Relief | 10% | 10% | 10%→14% | 14% | 18% ↑ |
| SDRT standard rate | 0.5% | 0.5% | 0.5% | 0.5% | 0.5% |
Sources: GOV.UK CGT rates · GOV.UK VC Schemes · GOV.UK SDRT
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Find a specialist →Important — information only, not tax or financial advice. UK Tax Hero summarises HMRC's published guidance as a free information and expert-matching service. Nothing on this page constitutes personal tax advice, financial advice or legal advice. Every individual's circumstances are different. Figures, rates and rules shown are based on HMRC's published guidance for tax years 2022/23 to 2026/27 and may be subject to change. Always verify information directly on GOV.UK and seek advice from a qualified tax professional before making any decisions. UK Tax Hero is not regulated by HMRC, the FCA or any professional body.
