Tax Comparison of VCT, EIS and SEIS
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A comparison table of the pros and cons of VCT, EIS and SEIS in 2022/23.
| TAX ASPECTS | VCT | EIS | SEIS |
| 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 |
| Dividends | Tax-free | Taxable | Taxable |
| 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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Source: Techlink
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