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.
|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 madeafter gain made||N/A N/A||1 year 3 years||Same tax year|
|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.