This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Venture Capital Schemes Manual

Venture Capital Schemes: Latest updates in the venture capital scheme manual: what's new

Finance Act 2018-19 introduced the following changes:

Risk to Capital condition

ITA07/S157A for EIS; ITA07/S257AAA for SEIS ITA07/S286ZA for VCTs;  

Investments made on or after 15 March 2018 under the EIS, SEIS and VCTs must meet the risk-to-capital condition. The company will have to demonstrate that it has objectives to grow and develop its trade in the long term, and, the investment must carry a significant risk.  

Relevant investment


Amends the definition of ‘relevant investments’. All risk finance investments are counted towards the lifetime funding limit for companies receiving investment under the tax-advantaged venture capital schemes. For the EIS and VCTs, the limit is £12 million for most companies and £20 million for knowledge-intensive companies. For SITR, the limit is £1.5 million.

Knowledge intensive companies increased lifetime limit for EIS and VCTs

From 6th April 2018 knowledge-intensive companies (KICs) will be able to raise £20 million of investment in the lifetime of the company or group provided the company meets the definition of a KIC. The maximum amount an individual investor can invest each year in EIS companies is £2m per year, provided any investments over £1 million are in one or more KICs.

Procedural changes for Venture Capital schemes
Advance Assurance changes for EIS, SEIS, VCTs and SITR

From 6 December 2017, changes to the advance assurance service provided by HMRC: HMRC will not give an opinion on speculative investments, where the company is raising a tax-advantaged investment for the first time.