The UK government has created four venture capital schemes to help small to medium-sized businesses and not-for-profit organizations find financial backing. These schemes offer tax relief to potential investors who buy or hold shares, bonds, or assets for a specified period.

To qualify for any of the schemes, the business must meet criteria such as being based in the UK, not being listed on a stock exchange, and meeting the specific qualifying requirements of the individual scheme. There are limits on the total amount that can be raised, but businesses that carry out research and development can exceed these limits under certain conditions.

The four schemes are the Seed Enterprise Investment Scheme (SEIS), Enterprise Investment Scheme (EIS), Social Investment Tax Relief (SITR), and Venture Capital Trusts (VCTs). The SEIS is aimed at new businesses seeking seed capital, EIS is aimed at businesses trying to grow, SITR supports investment in social enterprises, and VCTs provide tax-free dividends and capital gains to investors.