VCT, EIS & SEIS UK: High-Earner Tax Shelters Explained
ISA and pension full? The UK tax code has three further shelters with up to 50% income tax relief. The reliefs are real. The bets underneath are riskier than the marketing admits.
SEIS downside compression on a £20,000 bet
A complete failure on £20k stings, but tax relief turns a 100% loss into roughly a 28% loss.
VCT vs EIS vs SEIS at a glance (2026/27)
| Scheme | Income tax relief | Annual cap | Min hold |
|---|---|---|---|
| VCT | 30% | £200,000 | 5 years |
| EIS | 30% | £1,000,000 | 3 years |
| SEIS | 50% | £200,000 | 3 years |
Source: HMRC venture capital schemes guidance. All three are illiquid, concentrated bets.
Key takeaways
VCTs offer 30% income tax relief on up to £200,000/year, plus tax-free dividends and capital gains, with a 5-year minimum hold
EIS offers 30% income tax relief on up to £1m/year, CGT deferral, and loss relief, holding individual qualifying companies
SEIS offers 50% income tax relief on up to £200,000/year for very early-stage companies - the highest headline relief in the UK tax code
All three are illiquid, concentrated bets on small UK companies. The tax relief is real; the underlying investments are genuinely risky