There are 5.7 million small and medium-sized businesses in the UK. They're at the heart of our country’s economy: last year, they collectively employed 16.3 million people and generated revenues of £2.2 trillion.
Some would have never survived – let alone thrived – but for the support of private investors, often backed by the government through its Venture Capital Schemes: Venture Capital Trusts (VCTs), and the Enterprise and Seed Enterprise Investment Schemes (EIS and SEIS).
This short and simple factsheet explains and compares side-by-side the current tax treatment of these three government-endorsed schemes.
- What VCTs, EIS and SEIS are, in a nutshell
- Their risks and benefits
- How you could claim up to 30-50% income tax and other tax reliefs
- How you might be able to claim back some of last year’s tax
- How you might receive tax-free dividends
Please note: VCTs, EIS and SEIS invest in smaller higher-risk companies. These investments are only for experienced investors. You should not invest money you cannot afford to lose. They are illiquid and capital is at risk. Tax rules change and tax benefits depend on circumstances. This free factsheet is not advice nor a personal recommendation; it simply explains the main facts, so you can decide for yourself.