Enterprise investment schemes (EIS) and venture capital trusts (VCT) are designed to help smaller, early stage, or new companies raise finance through the scheme. They will often be unlisted securities, although in some cases they may be listed on the AIM.


What is an Enterprise Investment Scheme (EIS)?

An EIS offers a 30% tax credit to those that pay tax when the funds are invested. In addition, the structure of an EIS has a capital gains tax exemption for individual investors who purchase new shares in a qualifying company. There are various rules a company must follow to ensure investors can claim and keep EIS tax reliefs relating to their shares. For those that this option is suited to up to £1,000,000 per person, per year, can be invested in qualifying companies. You should seek professional financial advice before making any investment decisions.


Due to the high-risk nature of EIS and VCTs, it is highly recommended to consult an independent financial adviser before taking any course of action.


What is a Venture Capital Trust (VCT)?

Venture Capital Trusts are investment structures investing directly into higher risk stock, often unlisted or AIM-listed securities. A qualifying investment will also offer tax-fee income with no capital gains tax on growth.


Due to the high-risk nature of EIS and VCTs, it is highly recommended to consult an independent financial adviser before taking any course of action.

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