VCT, EIS & SEIS compared

At Pinder & Ratki we can advise individuals in the Newcastle Upon Tyne area on a range of tax-saving opportunities. The following article compares Venture Capital Trusts, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme.

The reliefs for Venture Capital Trusts (VCT), the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are similar in many respects, but there are some significant differences. The table below highlights the main reliefs. For further details see the facts sheets for each type of investment.

  VCT EIS SEIS
Annual investment limit £200,000 £1 million * £100,000
Income tax relief for subscribers 30% 30% 50%
Clawback if held for less than 5 years 3 years 3 years
Reinvestment relief period
– before gain made N/A 1 year Same tax year
– after gain made N/A 3 years  
Tax free dividends? Yes No No
Tax free capital gains? Yes Yes (after 3 years) Yes (after 3 years)
Tax relief for losses? No Yes Yes
IHT business property relief? No Yes Yes

* This is increased to £2 million provided that anything above £1 million is invested in knowledge-intensive companies. There is no limit on CGT deferral.

For more information on Venture Capital Trusts, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, individuals in the Newcastle Upon Tyne area should contact Pinder & Ratki.