Accessibility links

MENU

+44 (0)1707 897000

VCT, EIS & SEIS compared

An at-a-glance comparison of tax efficient schemes.

  1. Resources
  2. Your money
  3. Savings & investments

At Lovetts we can advise individuals in the Hatfield area 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.

  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, individuals in the Hatfield area should contact Lovetts.

The latest news

30 Sep

Criminals exploiting coronavirus pandemic, trade association warns

UK Finance is warning that criminals have been exploiting and adapting to the coronavirus (COVID-19) pandemic, with a growth in fraud and scams that target people online.

29 Sep

Furlough scheme set to move into final month

The government's Coronavirus Job Retention Scheme (CJRS) moves into its final phase this October before a new scheme comes into force.

28 Sep

Cyber security top risk for audit executives, research suggests

Research published by the Chartered Institute of Internal Auditors (Chartered IIA) has suggested that cyber security is the top corporate risk for audit executives.