Tax Efficient Investments

SilverThrone  Tax Efficient Investments

Personal tax · Investments

Make the most of UK tax reliefs

Use the reliefs the government offers to cut your income tax, shelter gains and pass on more of your wealth. We help you see which schemes fit your tax position, and what you give up for the relief.

50%

SEIS income tax relief

30%

EIS income tax relief

20%

VCT income tax relief from April 2026

0%

CGT on gilt gains

Capital at risk. EIS, SEIS and VCT shares are high-risk and hard to sell. You could lose all the money you invest. Tax reliefs depend on your circumstances and can change.

What are tax-efficient investments?

Most people know pensions and ISAs: you invest up to an annual limit and pay little or no tax on the growth. Specialist schemes work on the same principle, but go further.

The government created EIS, SEIS and Venture Capital Trusts to channel money into small and early-stage UK companies. Because those companies are risky, investors are compensated with generous reliefs: income tax relief on the amount invested, tax-free gains, and in some cases help with inheritance tax.

They can be valuable for higher earners who have already used their pension and ISA allowances. They are not suitable for everyone.

How the options compare in 2026/27

Headline reliefs for the 2026/27 tax year. Conditions apply to every relief.

Option Income tax relief Annual limit Minimum hold Gains Income Risk
ISA None £20,000 None Tax-free Tax-free Depends on holdings
Pension At your marginal rate £60,000 (may be tapered) Until age 55 (57 from April 2028) Tax-free inside the pension Taxed when drawn, 25% tax-free Depends on holdings
SEIS 50% £200,000 3 years CGT-free, plus reinvestment relief Dividends taxable Very high
EIS 30% £1m (£2m if the excess is in knowledge-intensive companies) 3 years CGT-free, plus deferral relief Dividends taxable High
VCT 20% (30% before April 2026) £200,000 5 years CGT-free Dividends tax-free High
Gilts None No limit None CGT-exempt Interest taxable Low

The specialist schemes

Enterprise Investment Scheme (EIS)

Shares in small, unlisted UK trading companies.

  • 30% income tax relief, which can be carried back a year
  • Gains on the shares CGT-free after 3 years
  • Defer tax on gains from other assets
  • Loss relief if a company fails
  • Unlisted EIS shares can qualify for inheritance tax Business Relief after 2 years: 100% relief within a £2.5m allowance shared with other business and agricultural property, and 50% above it

Seed Enterprise Investment Scheme (SEIS)

The earliest-stage companies, so the highest risk.

  • 50% income tax relief on up to £200,000 a year
  • Gains on the shares CGT-free after 3 years
  • Reinvestment relief removes CGT on half the gain reinvested
  • Loss relief if a company fails

Venture Capital Trusts (VCTs)

Listed funds that spread your money across many small companies.

  • 20% income tax relief on new shares from 6 April 2026
  • Tax-free dividends
  • Tax-free gains on sale
  • Must hold for 5 years to keep the relief

Gilts (UK government bonds)

You lend to the government for a fixed interest rate.

  • Gains are exempt from CGT
  • Low-coupon gilts return most of their value as tax-free gain
  • Interest is taxable as savings income
  • Low risk if held to maturity

Could they suit you?

These schemes tend to work best when most of the following are true.

  • You pay higher or additional rate income tax
  • You have already used your pension and ISA allowances
  • You can leave the money invested for 3 to 5 years or more
  • You could afford to lose the money you invest
  • You have a capital gain you would like to defer or reduce
  • You are planning how to pass wealth to your family

How we help

  1. 01

    Review your position

    Income, gains, allowances already used and what you want to achieve.

  2. 02

    Model the reliefs

    We show the tax saved under each option and the net cost of investing.

  3. 03

    Guidance and tools

    Clear guidance on how each scheme works, plus our KPI’s & Tools to test the numbers before you invest.

  4. 04

    Claim and report

    We claim the relief on your Self Assessment using your EIS3, SEIS3 or VCT certificates.

This page is general information, not personal advice. Tax reliefs depend on your circumstances and on the investment continuing to qualify, and can be withdrawn if shares are sold early. Rates and limits are for the 2026/27 tax year and may change.