VCM10040 - Introduction: similarities and differences of the four venture capital schemes

What the four schemes covered in this manual share is an aim of encouraging investment in a certain type of company. The precise definition of the type of company covered varies only slightly from scheme to scheme. Full details are given at VCM15000 onwards.

In the case of EIS, VC loss relief and the CVS, reliefs are available only for investment in shares which meet certain requirements (broadly ordinary shares) in such companies. Under the VCT scheme reliefs are available for investment in similarly qualifying shares of the VCT, while the VCT can make its own investments partly in shares other than eligible shares or loan stock or loans.

In the case of EIS and the VCT scheme reliefs are available to individuals - and, as respects EIS deferral relief only, certain trustees. In the case of CVS, reliefs are available only to companies.