What is the difference between vct and eis

UK startup investment surge could see business unicorns multiply post-pande Industry Insights. Featured Insights. Posted by Harvey Hall on Jun Download: Free Guide to the Enterprise Investment Scheme Not only could this mean that investing via VCTs could be less directly lucrative than EIS and fluctuate more regularly, but also that the potentially higher risk associated with investing via EIS could be mitigated should an investor invest across multiple EIS-eligible companies directly, spreading risk to ensure a sufficiently diversified portfolio.

Furthermore, VCT shares must be held for at least five years to retain income tax relief. No capital gains tax when selling VCT shares - there is zero tax to be paid on profits made from selling your VCT shares, with no minimum holding period providing the company still maintains its VCT status. Related posts SEIS reinvestment relief: what is it and how does it work? How can investors mitigate capital gains tax with the help of tax How experienced investors maximise their startup investments using tax Subscribe Via Email.

Popular Insights. The 5 main ways to make tax efficient investments in the UK Jul 26, What does 'capital at risk' mean when investing? The table below highlights the main reliefs. For further details see the facts sheets for each type of investment. There is no limit on CGT deferral.

As members of GGI, one of the top ten international accounting, consulting and law firm alliances, we are able to deliver the best possible advice on a global scale. Through GGI we have access to experts around the world who are able to give advice on local regulations, compliance and go-to-market strategies.

Through our GGI membership we have access to high quality firms in nearly every major financial and commercial centre worldwide. VCTs, on the other hand, do not qualify for Business Relief. VCTs are listed on a secondary market. In theory, this means that they should be somewhat more liquid than EIS investments. VCTs bought on a secondary market are not eligible for income tax relief, but they are eligible for tax relief on dividends.

Email address. Remember Me. Blog , Education , Insights. Tax-free dividends VCTs may pay out tax free dividends to investors.