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VCT, EIS & SEIS compared

At Taylor & Co we can advise individuals in the Royston 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 factsheets for each type of investment.

	VCT	EIS	SEIS
Annual investment limit	£200,000	£1 million *	£200,000
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 EIS.

For more information on Venture Capital Trusts, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, individuals in the Royston area should contact Taylor & Co.

29 Nov 2023

Autumn Statement spending plans represent 'very big fiscal risk', OBR warns

The Office for Budget Responsibility (OBR) has warned the government that the spending plans outlined by Chancellor Jeremy Hunt in the recent Autumn Statement represent a 'very big fiscal risk'.

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VCT, EIS & SEIS compared

Autumn Statement spending plans represent 'very big fiscal risk', OBR warns