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VCT & EIS Compared

The reliefs for Venture Capital Trusts and the Enterprise Investment Scheme are similar in many respects, but there are some significant differences. The table below highlights the main reliefs.

  VCT EIS
Annual investment limit £200,000 £500,000*
Income tax relief for subscribers 30% 20%
Clawback if held for less than 5 years 3 years
Reinvestment relief period
- before gain made
- after gain made

n/a
n/a

1 year
3 years
Tax free dividends? Yes No
Tax free capital gains? Yes Yes (after 3 years)
Tax relief for losses? No Yes (after 3 years)
IHT business property relief? No Yes

* No limit on CGT deferral.