- VCTs and EISs can be very useful as part of a tax planning strategy
- They are high-risk investments so generally you should turn to other options first
- It is important to pick the right type of vehicle for your financial planning needs
Venture capital trusts (VCTs) and enterprise investment schemes (EISs) are often cited as the next port of call after you have used up allowances for pensions and individual savings accounts (Isas). But there are some key differences between VCTs’ and EISs’ tax reliefs and investment approaches, so it is important to use the right one for your financial and tax planning needs.
The main tax reliefs these vehicles offer are as follows: