VCM25430 - EIS: income tax relief: limit on relief

ICTA/S290 (2); ITA/S158 (2)

There is a limit on the amount on which relief can be obtained for any year of assessment.

• The maximum amount for 2008-09 and later years is £500,000. This figure is in Finance Act 2008, but will be introduced by Treasury Order later in the year. Any enquiries about this situation should be referred to the EII Team, CT & VAT Tel no 020 7147 2626
• The maximum amount for 2006-07 and later years is £400,000.
• The maximum amount for 2004-05 and 2005-06 is £200,000.The maximum amount for years up to and including 2003-04 is £150,000.

An individual who would, but for this restriction, be able to claim relief on more than that amount cannot carry forward the excess. But it may be possible for the claimant to treat some of the shares as having been issued in the previous year, as explained at VCM25480.

For details of how relief can be attributed to shares when this restriction applies see VCM26020.