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Venture capital schemes

green tick box Increased Enterprise Investment Scheme (EIS) limits for investment in knowledge intensive companies up to £2m.
Restrictions to companies qualifying for EIS, Seed Enterprise Investment Scheme (SEIS) or Venture Capital Trust (VCT) investment if they are preserving capital.


EIS relief was rumoured to be on the Chancellor’s hit list for the Autumn Budget, however there have been no restrictions to the tax reliefs that can be achieved on qualifying investments.  Phillip Hammond did however announce some tweaks to the existing regime.

Legislation will be introduced in the Finance Bill 2017/2018 to ensure that relief for investment in venture capital schemes, such as the EIS, SEIS and VCT, is focused on companies where there is a real risk to the capital being invested.  The aim is to exclude companies and arrangements whose activities are intended to provide capital preservation.  The changes will have effect for investments made on and after the date of Royal Assent of the Finance Bill 2017/2018.

Finance Bill 2017/2018 will also introduce incentives for those investing in ‘knowledge-intensive’ companies under EIS and VCT schemes, with such investments benefiting from a doubling of the EIS investment limit to £2 million.  Knowledge-intensive companies will have their annual EIS investment limit doubled to £10 million, however the lifetime limit will remain the same.  These changes will take effect on or after 6 April 2018.

For further information contact our team.