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Specialist Investments

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Specialist Investments

Get advice on Specialist Investments from PAF Hereford

Get advice on Specialist Investments from PAF Hereford

About Specialist Investments


The choice of investment products can be bewildering. In addition to the more mainstream products, for those for whom it might be suitable, advice may be provided on Venture Capital Trusts (VCT’s) Enterprise Investment Schemes (EIS) and Seed Enterprise Investment Schemes (SEIS).

What are Enterprise Investment Schemes (EIS)?

Enterprise Investment Schemes (EIS) were introduced by the government to encourage investment in small unquoted companies. Typically they involve a larger degree of risk than investments in larger companies, such as those traded on the London Stock Exchange and may therefore not suit everyone. Advise should always be sought before investing.


Investors may be eligible for the following tax reliefs:

  • 30% upfront income tax relief on investments up to £1 million for the current tax year, as long as they keep their EIS shares for at least three years
  • 100% inheritance tax relief after two years, provided they still have the EIS shares at the time of death
  • Capital gains tax deferral for the life of the investment
  • Tax-free growth, provided the investor qualifies for income tax relief

What are Venture Capital Trusts (VCTs)?

VCTs are listed in the London Stock Exchange and provide finance for small, expanding companies with the aim of generating returns for investors. They’re a tax-efficient way to invest in smaller companies but do involve a high degree of risk and many not be suitable for everyone. Advice should always be sought before investing.

In brief, investors can benefit from:

  • Up to 30% income tax relief, if they invest between £5,000 and £200,000 in any tax year (to retain this relief your client will need to keep their VCT shares for at least five years)
  • Tax-free dividends
  • No capital gains tax

Need advice on investing your money?

With over 40 years experience PAF Hereford can help make an informed decision.  

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