VCT, EIS & SEIS compared

At Certax we can advise 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

 VCTEISSEIS
Annual investment limit£200,000£1 million *£100,000
Income tax relief for subscribers30%30%50%
Clawback if held for less than5 years3 years3 years
Reinvestment relief period   
– before gain madeN/A1 yearSame tax year
– after gain madeN/A3 years 
Tax free dividends?YesNoNo
Tax free capital gains?YesYes (after 3 years)Yes (after 3 years)
Tax relief for losses?NoYesYes
IHT business property relief?NoYesYes

* No limit on CGT deferral

 

For more information on Venture Capital Trusts, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, contact Certax.