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
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 (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.