Proposed changes to VCT and EIS schemes could see them
becoming more widely available.
As a brief recap, both venture capital trusts (VCTs) and
enterprise investment schemes (EISs) seek to provide capital to
small and expanding companies with the aim of growing the business
and generating a profit. The main difference between the two
schemes is that while a VCT invests in a series of companies, the
EIS only invests in a single company, which increases the element
of risk to the investor.
The Treasury has proposed a relaxation of the legislation
governing both VCTs and EISs, which could shift a previously
esoteric area of investment into the mainstream for many
individuals.
VCTs
