DIY investor
Taking the risk
Andy Davis
ILLUSTRATIONS BY CHRIS TILBURY
As the end of the financial year comes into view, better off investors will once again stage an 11th-hour dash to put money into schemes that offer tax breaks to backers of risky small companies and start-ups
Both Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) investments attract 30 per cent tax relief on the sum committed up to a prescribed limit, and charge no tax on capital gains provided the shares are held for a minimum period (three years for EIS, five for VCTs). VCTs in addition incur no tax on dividends.