The enterprise investment scheme (EIS) and venture capital trusts (VCT) are tax efficient investments sanctioned by the Government in order to encourage investment in UK business.
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 an EIS investment.
Enterprise Investment Scheme
EIS is the name of a scheme which encourages individuals to invest money in shares issued by qualifying unquoted trading companies with a permanent establishment in the UK.
A subscription for eligible shares of a qualifying EIS company is a tax efficient investment for the individual. He can benefit from the following tax reliefs: