A Venture Capital Trust ( VCT ) is an investment company broadly similar to an investment trust. It will be quoted on the stock market and will have to invest at least 70% of its assets in companies that would qualify under the EIS, and must distribute most of its income by way of dividend. It must be able to demonstrate a spread of investments: none can account for more than 15% of the value of its portfolio. There are other conditions for VCTs.
The EIS is a government scheme that allows certain tax reliefs for investors who subscribe for qualifying shares in qualifying industries.
The reliefs for Venture Capital Trusts and the Enterprise Investment Scheme are similar in many respects, but there are some significant differences.
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