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.
|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.
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.