Accessibility links

Schedule Consultation

 Call us on - 01342 824181

VCT, EIS & SEIS compared

At DMC Partnership 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 factsheets 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 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 more information on Venture Capital Trusts, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, contact DMC Partnership.

Latest news stories

27 Jan 2023

CBI survey finds retail sales volumes down in January

A survey carried out by the Confederation of British Industry (CBI) has revealed that retail sales volumes 'fell at a fast pace' in the year to January.