The Integer Heisenberg group
is generated by the matrices with and . Their group commutator is the nonidentity central matrix with . Thus it is nonabelian and nilpotent of class two, while being finitely generated.
The countable direct sum
is abelian and therefore nilpotent of class one. It is not finitely generated, whereas every polycyclic group is finitely generated. Hence it is nilpotent but not polycyclic.
The lamplighter group
is generated by one lamp switch and one translation. It is metabelian, hence solvable. Its base subgroup is not finitely generated. Every subgroup of a polycyclic group is finitely generated, so the lamplighter group is not polycyclic.
Let be the subgroup whose upper-left block is . It is a finitely generated nilpotent subgroup of the integer upper unitriangular group and is normal in . The block-diagonal matrix
generates an infinite cyclic quotient, so
Finitely generated nilpotent groups are polycyclic, and an extension of polycyclic groups is polycyclic. Hence is polycyclic.
Inside , retain only and the entries in positions and . They form a subgroup
The characteristic polynomial of is , so its eigenvalues are
One has modulus greater than one, and the resulting semidirect product has exponential growth. Every finitely generated virtually nilpotent group has polynomial growth, as does each of its finitely generated subgroups. Therefore cannot be virtually nilpotent.

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