At Smart we can advise individuals 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

* 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.



We can help with all of your business and personal tax and financial planning needs. For a strategic review of your finances, please contact us.

Disclaimer: We don’t take any responsibility for actions taken based on above information. Please speak to our financial advisor if you need more information. This guide was written specifically for Smart Accounting clients. Some of the information contained in this guide might not be applicable if you do not have a business managed by Smart Accounting. By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details are correct at time of writing.


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