Today we had the Chancellor’s first Spring Statement since the decision to move the Budget to the Autumn. The Chancellor took pains to manage expectations downwards but, while there were no major tax announcements for the new financial year, there were some interesting consultations launched and updates on earlier consultations. Entrepreneurs’ Relief (ER) ER provides … Continue reading The Spring Statement: What’s new?
Clampdown on so-called capital preservation As was widely expected, the Government intends to change the EIS, SEIS and VCT rules to ensure they are focussed on high-risk, “genuine entrepreneurial” IP-intensive companies and are not used in a way that provides “capital preservation” for investors. Whilst the good news is that no one industry has been … Continue reading A mixed bag of news for the EIS industry
The Government today announced a mixed bag of proposed changes to the current rules for venture capital schemes including venture capital trusts (VCTs), enterprise investment schemes (EISs) and seed enterprise investment schemes (SEISs). Subject to state aid clearance, these changes include a cap of £15m on total investment received by a company under EIS and VCT, … Continue reading Venture capital scheme tinkering – is the Government still supporting enterprise?
The CGT holiday for investors re-investing gains in SEIS shares has been extended for another year. Whilst this is good news it is disappointing that the re-investment relief is only available for half the gain re-invested. SEIS relief has proved an extremely popular and invaluable means of raising vital seed capital for small start up companies in its … Continue reading Good news for investors in start up companies
We are pleased to see the Government confirm their intention to introduce a new tax relief for seed investment in start up companies. Obtaining seed capital has been challenging for digital media and technology companies. To recap the new relief provides 50% income tax relief on investments up to £100,000 per annum per individual. There is also a maximum amount … Continue reading SEIS – attracting investment in start up companies ?
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 … Continue reading EIS/VCT investment limits curtailed
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 … Continue reading VCTs and EIS