Tax Planning Tip

As we head toward 31 January tax payment deadline for 2024/2025 and tax year-end, now is a good time to update taxpayers on the latest tax-efficient investing changes. Following last week's Budget, VCT income tax relief will drop to 20% from 6 April 2026. This makes the (Seed) Enterprise Investment Scheme (SEIS/EIS) even more compelling, with its Advance Assurance from HMRC, unchanged 50% (SEIS) 30% (EIS) income tax relief and a host of additional benefits:

• 📆 Carry-back income tax relief – Invest in 2025/2026 and carry back to 2024/2025.
• 💼 CGT deferral – Defer tax on gains 12 months before to 36 months after disposal
• 🕊? IHT relief – EIS shares qualify for Business Relief after two years ownership.
• 🛡? Loss relief – Offset against income tax or CGT if a company fails.
• 📈 Tax-free growth – No CGT arises on gains within qualifying EIS.

If you would like BFN to review your tax affairs for the current or previous tax year(s) get in touch with your usual contact or - http://www.enquiries@bfn.com.

Peter Nichols – Tax Director BFN Accounts & Tax
2 December 2025