Guide To... venture capital trusts

The Venture Capital Trust Scheme was introduced in 1995. In some ways, this could be viewed as an extension to the Enterprise Investment Scheme (EIS). VCT investments are effectively a collective investment trust which invests in a number of EIS-type companies, effectively spreading the risk. The scheme is aimed at investors who wish to invest in new and expanding companies and obtain the associated tax breaks, without putting all of their eggs in one basket.