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HMRC internal manual

Venture Capital Schemes Manual

Introduction to the Venture Capital Schemes: Overview and background: the Venture Capital Schemes

The venture capital schemes encourage investment in certain newer, smaller unquoted trading companies. The schemes provide various tax reliefs to individuals who invest directly or indirectly in qualifying small, higher risk companies or social enterprises, to help them grow and develop.

The venture capital schemes are:

  • [The venture capital schemes encourage investment in certain newer, smaller unquoted trading companies. The schemes provide various tax reliefs to individuals who invest directly or indirectly in qualifying small, higher risk companies or social enterprises, to help them grow and develop.

The venture capital schemes are:

*](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm10000) (EIS) encourages direct investment by individuals. * [The venture capital schemes encourage investment in certain newer, smaller unquoted trading companies. The schemes provide various tax reliefs to individuals who invest directly or indirectly in qualifying small, higher risk companies or social enterprises, to help them grow and develop.

The venture capital schemes are:

  • [The venture capital schemes encourage investment in certain newer, smaller unquoted trading companies. The schemes provide various tax reliefs to individuals who invest directly or indirectly in qualifying small, higher risk companies or social enterprises, to help them grow and develop.

The venture capital schemes are:

*](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm10000) (EIS) encourages direct investment by individuals. *](https://www.gov.uk/hmrc-internal-manuals/venture-capital-schemes-manual/vcm30000) (SEIS) encourages direct investment in certain early stage small companies, and complements the EIS and VCT scheme. * Venture Capital Trusts (VCT) scheme encourages indirect investment by individuals, through a VCT, a corporate vehicle similar to an investment trust. The VCT makes a range of investments in companies that meet the same conditions as for the EIS. *   * Social Investment Tax Relief (SITR) provides reliefs similar to the EIS for investments in social enterprises. The scheme was enlarged from 6 April 2017 for newer social enterprises. * Share Loss Relief (previously called ‘VC Loss Relief’) is available both to individuals and investment companies on the disposal of shares in certain companies.