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VCT, EIS and SEIS Compared

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
- after gain made

 

N/A
N/A

 

1 year
3 years

 

Same tax year

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.