What is the difference between eis and vct

Alternative and unquoted investments are inherently high risk and invested capital is at risk. Tax ramifications may vary depending on the investor's personal circumstances. Investment Guide. Calculus Capital Limited is not able to give advice to prospective investors about the suitability of the investments.

Prospective investors are recommended to seek specialist tax and financial advice before investing in any Calculus EIS Fund. An investment into a Calculus EIS Fund may only be made on the basis of reading in full the information set out in the relevant Information Memorandum.

When investing in the Fund, your capital is at risk. The value of shares and income from them may go down as well as up and despite the tax relief you may not recover the amount originally invested. An investment in smaller and unquoted companies carries a higher risk than many other forms of investment. Shares in unquoted companies are not readily marketable.

You should not invest in an EIS unless you can afford to lose some or all of your capital. An EIS investment is only appropriate for investors with a medium to long term investment horizon; the timing and extent of realisation cannot be predicted and may extend beyond five years.

It is not possible to allow a partial withdrawal of your investment. You may request a total withdrawal, but since many investments made by the Fund will be in unquoted companies, this may not be possible. Withdrawal within three years would lead to repayment of any tax reliefs received.

The tax benefits available depend upon your individual circumstances and these benefits may change dependent upon future legislation. This site uses cookies as described in our Cookie Policy.

By continuing to browse this site you are agreeing to our use of cookies. What else should you know? Rather, it refers to a collection of tax reliefs offered to investors by the UK government, when they choose to invest in companies which qualify for EIS status particularly start-ups. In another echo to the structure of VCTs, you must hold your EIS shares for a minimum of 3 years to claim the tax reliefs on offer.

This allows you to claim back some of the value of your original investment, in the event that it fails. The percentage you can claim back is equal to the highest rate of Income Tax which you pay. Clearly, both options provide powerful routes for investors to commit their wealth. Both offer significant tax reliefs, for instance, which are hard to replicate elsewhere. This is because VCT returns are typically paid to investors in the form of dividends, which are not subject to tax.

From an investment perspective, however, EIS clearly has an important advantage in the form of loss relief — offering substantial downside protection to EIS investors, whilst allowing you to take advantage of the investment upside potential.

EIS can also be a powerful tool within a wider estate planning strategy. This is because EIS investments are not usually subject to inheritance tax once they have been held for a minimum of 2 years. To browse our latest projects, we invite you to take a look at our portfolio here.

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