8 Autumn Budget | 26 November 2025 Venture capital trusts (VCTs) and enterprise investment schemes (EISs) VCT income tax relief will decrease to 20% from 2026/27. The VCT and EIS company investment limit will rise to £10 million and £20 million for knowledge intensive companies (KICs). The lifetime investment limit for the companies themselves will increase to £24 million and £40 million for KICs. The gross assets test will increase from April 2026 to £30 million before share issue and £35 million after. Capital taxes Capital gains tax (CGT) annual exempt amount The CGT annual exempt amount for individuals and personal representatives will remain at £3,000 for 2026/27. The annual exempt amount for most trusts will stay at £1,500 (minimum £300). CGT rates The lower main rate of CGT will remain at 18% and the higher main rate will remain at 24% for disposals made in 2026/27. As previously announced, the rate for business asset disposal relief and investor’s relief will increase to 18% from 6 April 2026. Employee ownership trusts The CGT relief available on qualifying disposals to employee ownership trusts will be reduced from 100% of the gain to 50% with effect from 26 November 2025. Inheritance tax (IHT) bands The IHT nil rate band will remain at £325,000 and the residence nil rate band will stay at £175,000, with its associated taper threshold remaining at £2 million. These levels will be frozen for a further year to the end of 2030/31.
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