A comparison table of the pros and cons of VCT, EIS and SEIS in 2020/21.
|Income tax relief||30%||30%||50%|
|Maximum personal investment per tax year||£200,000||£1,000,000 (£2,000,000 in the case of knowledge intensive companies (KICs) invested in through EIS) for income tax relief, no limit for CGT deferral relief||£100,000|
|Tax relief clawback||5 years||3 years||3 years|
|Backdating to previous tax year?||No||Yes, up to 100% of investment||Yes, up to 100% of investment|
|CGT reinvestment/deferral relief||No||Yes, deferral for gains made up to 1 year before/3 years after EIS investment||Yes, 50% for gains re-invested|
|Investor capital gains tax liability||Nil at any time||Nil after 3 years, except for deferred gains||Nil after 3 years|
|IHT Business Relief||No||Yes, after 2 years||Yes, after 2 years|
For advice on any of the above investment vehicles ahead of tax year end, please contact us.
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