VCT, EIS and SEIS compared - CloudCo Accountants

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.
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VCT EIS SEIS
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
Reinvestment relief period
– before gain made
– after gain made
n/a
n/a
1 year
3 years
n/a

n/a

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 (after 3 years) Yes (after 3 years)
IHT business property relief? No Yes Yes

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* a further £1 million is available for investment in knowledge-intensive companies.

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CloudCo Group is a Chartered Management Accountancy Firm offering premium accounting services to a range of businesses and individuals from their office in Milton Keynes.

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