Same asset class, different intent: The reality of VCTs vs EIS

VCTs and EIS share the 'same noble policy goals'

clock • 5 min read

Rather than overlapping, VCTs and the EIS provide advisers with versatile, complementary tools to address a wide spectrum of client needs, writes Stuart Mant

Venture capital trusts (VCT) and the Enterprise Investment Scheme (EIS) are the twin pillars of the UK's risk-finance ecosystem. Both share the same noble policy goal: directing private capital into the early-stage, high-growth companies that fuel UK innovation and employment. From a distance, it is easy to view these two channels as interchangeable, simply two different routes into the same asset class. Under this logic, one might assume that if the incentives for one scheme change, capital will naturally migrate to the other. However, having spent years working with the adviser and ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on VCTs / EIS

Discipline, not relief will define the next era of VCTs

Discipline, not relief will define the next era of VCTs

'Periods of recalibration are not inherently negative'

Nick Morgan
clock 19 March 2026 • 4 min read
Serving the UK's new generation of wealth creators: What advisers need to know

Serving the UK's new generation of wealth creators: What advisers need to know

'A new cohort of younger, dynamic, and tech‑savvy high earners has emerged'

Andrew Aldridge
clock 18 March 2026 • 6 min read
Why renewables are becoming central to tax-efficient planning

Why renewables are becoming central to tax-efficient planning

Why renewables suit Business Relief strategies

Andrew Aldridge
clock 13 March 2026 • 5 min read