Investment tax relief rises by smallest amount in four years amid recent Budget measures

Foregone Treasury revenue via investment tax breaks rose just 2.5% to £45.5bn in the last financial year, despite registering a 17% rise from £37.9bn in the year before, according to research from Bowmore Financial Planning based on data sourced from HMRC. Tax breaks across pension contributions, ISAs and venture capital trusts (VCTs), for example, are designed to encourage people to save and invest. The cost of ISA-related tax breaks for the government fell for the first time in four years in 2025/26 to £9.7bn in lost revenue, down marginally from £9.8bn in the year before, while tax...