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Enterprise Investment Scheme - The Enterprise Investment Scheme is designed to help smaller, higher-risk companies raise finance, and investors can obtain generous income tax and capital gains tax breaks for their investment. The table below sets out the income and capital gains tax reliefs.

Venture Capital Trusts - VCTs are designed to encourage private individuals to invest in smaller, high-risk unquoted trading companies. They can receive income tax relief of 20% of the amount invested, up to £200,000, following a reduction from the previous 30% rate with effect from 6 April 2026. Dividends paid out of VCTs are tax-free and capital gains are also tax-free.

Seed Enterprise Investment Scheme - A junior version of EIS, known as the Seed Enterprise Investment Scheme (SEIS), is also available — please see the table below for the differences.

	VCT	EIS	SEIS
Annual investment limit	£200,000	£1 million (£2 million for knowledge-intensive companies)	£200,000
Income tax relief for subscribers	20%	30%	50%
Clawback if held for less than	5 years	3 years	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*	Yes*

*From 6 April 2026, Business Property Relief is capped at 100% on the first £1 million of combined qualifying assets (shared with Agricultural Property Relief), with 50% relief above that threshold.

Rates & Allowances Pages ► Income Tax Rates & Allowances ■ Capital Gains Tax ■ Pensions ■

■ Inheritance Tax ■ National Insurance ■ Statutory Pay ■ Child Benefit ■ Vehicles ■ VAT ■ ISAs ■

■ Corporation Tax ■ Capital Allowances ■ Stamp Duty & SDLT ■ Investing in a small business ■

Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ T: 01332 202660

Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd. Registered in England No. 05770414