VCTs and EIS

Cliona Kirby, Tax Partner, CMS

The Government will proceed with the changes to the EIS and VCT rules to make them more EU friendly.   Companies will now be able to trade internationally provided they have a permanent establishment in the UK.   The confirmation of the relaxation of the requirement for VCTs to be listed on the Official List in the UK to being listed on any regulated EU market will be welcomed on the basis that it may result in cheaper establishment costs for VCTs.  

VCT and EIS relief may become increasingly important in assisting start up companies obtaining venture capital and business angel finance.

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