What is the maximum annual investment allowed in both VCTs and EIS?

The maximum annual investment allowed in both Venture Capital Trusts (VCTs) and the Enterprise Investment Scheme (EIS) is GBP 1,000,000. This limit is important as it allows investors to take advantage of the tax reliefs associated with these investment vehicles effectively.

Under the EIS, investors can receive significant tax benefits, including income tax relief and capital gains tax exemption, when investing in qualifying companies. The overall limit of GBP 1,000,000 applies to the investment in eligible shares in EIS companies within a single tax year. For VCTs, the limit for tax relief is capped at GBP 200,000, but since the question specifically asks for the combined investment limit in both VCTs and EIS, the higher limit applies.

Therefore, the maximum annual investment of GBP 1,000,000 reflects the total potential for tax-efficient investment for an individual using both VCTs and EIS opportunities in accordance with the regulations established for these schemes.