Which equity scheme should I raise under: SEIS, EIS or VCT?

How to choose between SEIS, EIS and VCT funding for a UK growth-stage round.

**Quick Answer**

Founders choose between SEIS and EIS. VCT is an investor-side wrapper — your company qualifies for VCT investment under broadly the same rules as EIS, so you do not "choose" VCT, you welcome it.

**SEIS** — Default for first equity rounds: company under 3 years, gross assets under £350k, lifetime cap £250k.

**EIS** — Default for subsequent rounds: under 7 years of first commercial sale (10 for KIC), gross assets under £15m, £5m annual and £12m lifetime cap.

**VCT** — A retail tax-incentivised fund structure. VCTs invest in companies under the same risk-finance rules as EIS, but with a few extra investor-side restrictions. A VCT-led round is typically larger (£1m–£5m) and more institutional in process.

**How to sequence**

1. Use SEIS first if you qualify.
2. Move to EIS once SEIS is exhausted.
3. Welcome VCT participation in the EIS round if a VCT manager wants to lead or co-invest.

**Common pitfalls**

- Treating VCT as a separate route — it is an investor wrapper inside the EIS framework.
- Accepting non-qualifying investment before SEIS/EIS that breaks the risk-finance ceiling.

**Conservative Note**

VCT, SEIS and EIS rules are set in UK tax legislation and can change at Budget. This is editorial guidance, not tax, financial or investment advice.