VCT & EIS

It’s not just high-net worth individuals that can benefit from a VCT or EIS…

EIS’s and VCT’s invest in assets that are high risk and can be difficult to sell such as shares in unlisted companies, therefore are only suitable for experienced investors. The value of the investment and the income from it can fall as well as rise and investors may not get back what they originally invested, even taking into account the tax benefits.

Both Venture Capital Trusts (VCT) and Enterprise Investment Schemes (EIS) provide tax-efficient investment opportunities in some of the most exciting up and coming businesses in the UK. Their popularity comes from the possibility for high returns, not just from dividends and capital gains – but also because the UK Government provides up to 30% tax relief on your investment. But VCTs and EIS are high risk products and your returns are in no way guaranteed.

With a growing number of VCTs and EISs available, and with the recent introduction of SEIS, understanding the differences between them is vital to making an informed decision. Some schemes focus on particular market sectors, whilst others focus on the size of a company or have finite investment periods. Each VCT or EIS will have a different level of risk and it’s important to match this with your unique needs and financial profile. Our investment expert works daily with VCTs and EISs and can help you understand the risks associated with each product and find the right one for your unique financial circumstances.

It’s not just high-net worth individuals that can benefit from a VCT or EIS. If you are about to realise a capital gain, perhaps through the sale of a property or other investment asset, or if you’ve reached the pensions savings threshold – this type of investment could be perfect for you. Please note these products should only be considered by experienced investors.