Study of the Impact of Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) on Company Performance
This study assesses the impact of Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) tax relief on the UK economy, and whether these interventions had been worthwhile.
Overall, the findings indicated that EIS and VCT investments had had a positive effect on capacity building in recipient companies. However, in material terms, these effects remained very small.
There was some limited evidence of a profit-enhancing effect. However, both schemes appeared to be associated with differentials in performance depending on the size, age and sector of the recipient company.