Enterprise Investment Schemes and Venture Capital Trusts

Both EIS and VCTs are part of the UK tax system designed to encourage private individuals, through attractive tax reliefs, to invest in small, higher-risk companies. These investments enable individuals to participate in UK businesses at various stages of development, benefiting from any growth they achieve and potentially aiding the diversification of a portfolio.

An EIS is designed to help small companies not listed on the London Stock Exchange, to raise finance by offering a range of tax reliefs to investors who purchase new shares in these companies.

VCT’s often spread the investment risk over a number of companies. They encourage investments into small and medium sized companies – many are unlisted, however those that are listed are likely to be listed on the Alternative Investment Market (AIM) which is a sub-market of the London Stock Exchange.


What are the differences?




Annual investment limit



Income tax relief



Option to defer capital gains



Business property relief


Yes –  if held for 2 years

Tax free dividends



Minimum holding period

5 years

3 years

How can we help you?

Our wealth planners will be able to discuss with you the different levels of forecasted target returns and associated risks across our current preferred EIS and VCT offerings. For more information please email me at james@cazenovecapital.com.


These animations are for information purposes only. Nothing should be deemed to constitute the provision of financial, investment or other professional advice in any way.

VCTs and EIS are higher risk investments, past performance is not a guide to future performance. The value of investments and the income received from them can fall as well as rise. Investors may not get back the amount invested.

Statements concerning taxation are based on our understanding of the taxation law in force at the time of publication. The levels and bases of taxation may change. You should obtain professional advice on taxation where appropriate before proceeding with any investment.

Contact Cazenove Capital

To discuss your wealth management requirements, or to find out more about our services and how we can help you, please contact: