Accessibility links

You are using an outdated browser. Upgrade your browser today for a better experience of this site and many others.

VCT, EIS & SEIS compared

An at-a-glance comparison of tax efficient schemes.

At HSA & Co we can advise on a range of tax-saving opportunities. The following article compares Venture Capital Trusts, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme.

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.

	VCT	EIS	SEIS
Annual investment limit	£200,000	£1 million *	£200,000
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	N/A	1 year	Same tax year
– after gain made	N/A	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	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 for EIS.

For more information on Venture Capital Trusts, the Enterprise Investment Scheme and Seed Enterprise Investment Scheme, contact HSA & Co.

Latest News

17 Jul 2026

HMRC still has a long way to go on customer service, says CIOT

HMRC's performance data for 2025/26 shows it has made progress on customer service but still has a way to go, according to the Chartered Institute of Taxation (CIOT).

16 Jul 2026

HMRC bolsters award schemes for reporting tax fraud

HMRC says it is making it easier for informants to report serious tax fraud and avoidance through the Strengthened Reward Scheme.