Pensions, savings and investments

Individual savings account (ISA) subscription limits
The ISA annual subscription limit for 2019/20 will remain at £20,000. The annual subscription limit for junior ISAs (JISAs) and child trust funds (CTFs) for 2019/20 will rise to £4,368.
Lifetime allowance for pensions
The lifetime allowance for pension savings will increase to £1.055 million for 2019/20. There is no change to the annual allowances.
Venture capital trusts (VCTs) and enterprise investment schemes (EISs)
The rules for approved EIS funds will be amended to require approved funds to focus on knowledge-intensive companies with effect from April 2020. The funds will also have a longer period in which to invest capital. Investors in these funds will be allowed to set this income tax relief against their liabilities in the year before the fund closes.

The venture capital limits and reliefs remain unchanged, as detailed below.

Venture capital allowances and reliefs

2019/20

2018/19

Venture capital trust at 30%

£200,000

£200,000

Enterprise investment scheme at 30%1
EIS eligible for CGT deferral relief

£200,000
No limit

£200,000
No limit

Seed EIS (SEIS) at 50%
- SEIS capital gains tax reinvestment relief

£100,000
50%

£100,000
50%

* Above £1,000,000 investment must be in knowledge-intensive companies


Pensions for the self-employed
This winter the Department for Work and Pensions will publish a paper setting out the government’s approach to increasing pension participation and savings persistency among the self-employed. The paper will focus on expanding evidence through a programme of targeted interventions and partnerships.

Think ahead
The lifetime allowance will rise by £25,000 from 6 April 2019
. If you plan to draw from your pensions and already have funds exceeding the current £1.03 million lifetime allowance limit, you may want to wait before taking your pension benefits.

Think ahead
The dividend allowance and personal savings allowance will be frozen for 2019/20. Your ISA allowance is £20,000 in 2018/19 and 2019/20.

image