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 |
£500,0001 |
| Income tax relief for subscribers |
30% |
30%2 |
| 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 |
1. Limit increases to £1 million from 6 April 2012
2. Rate increased from 20% to 30% from 6 April 2011. No limit on CGT deferral.
