VCT, EIS and SEIS compared
The reliefs for venture capital trusts (VCTs), the enterprise investment scheme (EIS) and the seed enterprise investment scheme (SEIS) are similar in many respects, but there are some significant differences. The table below highlights the main reliefs.
|Annual investor 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|
|Deferral relief period
- before gain made
- after gain made
| 1 year
|Tax-free capital gains?||Yes||Yes (after 3 years)||Yes (after 3 years)|
|Tax relief for losses?||No||Yes (after 3 years)||Yes (after 3 years)|
|IHT business property relief?||No||Yes (after 2 years)||Yes (after 2 years)|
* a further £1 million is available for investment in knowledge-intensive companies.
** while deferral relief is not available, reinvestment relief is available to reduce 50% of the gain, providing it is made within the same tax year.