Henry Emson: VCTs v EIS - compare and contrast

Within the tax-efficient investment arena there are two leading products for those seeking to benefit from government investment incentives - venture capital trusts (VCTs) and companies that qualify under the Enterprise Investment Scheme (EIS) rules. While VCTs and EIS share the ‘tax-efficient investment' status, the advantages they offer are entirely different, so it should come as no surprise they are appropriate for separate client circumstances and investment strategies. Both structures offer income tax relief and tax-free capital gains, but the similarities stop there. While thes...