Who can apply for a venture capital scheme?
Eligibility criteria businesses must meet to qualify for a venture capital scheme.
Your company must:
- have a in the UK
- carry out a trade that qualifies
- plan to spend the investment on a qualifying trade
- not be listed on a recognised stock exchange at the time of investment
- not be controlled by another company
You must also meet the specific qualifying conditions of whichever scheme you opt for.
Qualifying trades
You must use the investment for a qualifying trade.
Most trades will qualify, including any research and development which will lead to a qualifying trade.
However your company may not qualify if more than 20% of your trade includes things like:
- coal or steel production
- farming or market gardening
- leasing activities
- legal or financial services
- property development
- running a hotel
- running a nursing home
- generation of energy, such as electricity and heat
- production of gas or other fuel
- exporting electricity
- banking, insurance, debt or financing services
Find a full list of, and more information about in the HMRC manual.
Limits on the money you raise
There鈥檚 no minimum, but there鈥檚 a maximum amount you can raise depending on which scheme you opt for.
The maximum amount you can raise in the lifetime of your company for:
- Seed Enterprise Investment Scheme (SEIS) investments is 拢250,000
- Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) investments is 拢12 million
There may be higher limits if your company carries out and meets certain conditions.