UK venture capital tax reliefs

Venture Capital Tax Reliefs are a key part of the UK Government’s strategy to encourage new investment in small and growing businesses. All of the reliefs provide generous Income Tax and Capital Gains Tax incentives to investors, subject to certain limits and conditions being met. In brief,  Income Tax relief is available at 30% of the amount invested, except for SEIS where the rate is 50% and gains made on the disposal of qualifying investments are free from Capital Gains Tax.

Enterprise Investment Scheme (EIS)
EIS was introduced in 1994 with the aim of helping smaller, higher-risk trading companies to raise finance by offering a range of tax reliefs to investors who purchase new shares in those companies.
Seed Enterprise Investment Scheme (SEIS)
SEIS was introduced in 2012 to help small, early-stage companies raise equity finance. It is similar to EIS but is intended to recognise the particular difficulties which very early stage companies face in attracting investment, by offering income tax relief at a higher rate.
Venture Capital Trust (VCT)
A VCT is an investment company whose shares are listed on a European regulated market. It is required to invest in and maintain a portfolio of qualifying trading companies. VCTs were introduced in 1995 as an alternative to EIS to enable smaller, higher-risk companies to raise finance.
Social Investment Tax Relief (SITR)

The Government introduced SITR in 2014 to encourage investment in social enterprises.

Whether you are an individual looking to make an investment or a company looking to raise funds, Moore Stephens can advise you on the conditions that need to be satisfied and can deal with HMRC on your behalf. Moore Stephens is a member of The EIS Association (EISA).