EIS/VCT investment limits curtailed

Cliona Kirby, Tax Partner, CMS

We are very disappointed that the maximum fundraise per EIS company has been restricted to £5 million from the expected £10 million announced last year.  Clearly, the Government has run into some difficulties in obtaining EU approval for the £10 million limit.    The £5 million will now, subject to state aid approval, be a general limit for EIS and VCT investment into any single company for shares issued on or after 6 April 2012.   There does not appear to be any further news on the disqualifying purpose test.

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