Venture capital schemes are tax efficient investments sanctioned by the Government in order to encourage investment in UK enterprises. They comprise the following schemes:

1. •

   enterprise investment scheme (EIS)

2. •

   seed enterprise investment scheme (SEIS)

3. •

   venture capital trusts (VCT)

4. •

   social investment relief (SI relief, also known as social investment tax relief (SITR))

The tax reliefs are similar but not identical. Some investors consider VCTs to be more attractive as the risks are spread by indirectly investing in a number of unquoted companies rather than investing direct in one company, as with EIS and SEIS investments.

This guidance note considers the capital gains tax position of individuals disposing of shares acquired through the schemes listed above.