Despite 2022 being a bumper year for venture capital trusts (VCTs), recent data provided by Deepbridge Capital suggests that of the two major tax-advantageous early-stage investment programmes in the UK, the Enterprise Investment Scheme (EIS) trumps VCTs in terms of popularity among financial advisers.

When asked whether they tend to use EIS funds or VCTs more often, 11% of financial advisers said they exclusively invest through the EIS, compared to just 2% who said they exclusively use VCTs.

Nearly a third use both government-approved schemes equally, with a further 26% stating that they use the EIS “predominantly” while using VCTs “when appropriate”.

Speed of deployment was cited as the primary factor for investing through the EIS.

“Given last year’s record fundraising by VCTs, you would be forgiven for thinking that they are the primary tax-efficient investment planning tool used by financial advisers, but this survey suggests otherwise,” said Andrew Aldridge, partner at Deepbridge Capital and board member of the Enterprise Investment Scheme Association (EISA).

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