A VCT — venture capital trust — is a listed company that invests in small, unlisted UK businesses. EIS, the Enterprise Investment Scheme, lets you buy shares in such companies directly. Both come with tax reliefs set by the government, such as income tax relief on what you invest, and the rates and limits change over time. The reliefs have conditions, above all a lock-up period: you generally have to hold VCT shares for at least five years, and EIS shares for three, or pay the relief back.
The defining feature is illiquidity. VCT shares often trade at wide discounts with few buyers, and EIS shares usually can't be sold at all until the company is sold or listed. Small unlisted companies fail often, and the relief softens a loss without preventing one. The app can track listed VCT shares like any share. An EIS holding has no market price, so the only option is to enter a value by hand on the Portfolio page, and that value is a guess until the day you can sell.
Relief softens a loss. It doesn't make an illiquid, high-risk holding safe. Check HMRC for current rules.
Educational content only. It is not personal financial advice.