At first glance, there seemed to be little mention of the venture capital schemes in today’s Spring Budget. However, there is scope for the Seed Enterprise Investment Scheme (“SEIS”), the Enterprise Investment Scheme (“EIS”) and Venture Capital Trust (“VCT”) reliefs to be subject to scrutiny through the ‘Patient Capital Review’. The Chancellor stated the review will “consider existing … Continue reading Spring Budget: EIS under scrutiny?
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 Chancellor has added to the range of tax reliefs available for investors by announcing that Social Investment Tax Relief will be introduced in the Finance Bill 2014. Social Investment Tax Relief is expected to closely mirror EIS by providing income tax relief of 30% on qualifying investments in social enterprises, deferral of CGT on … Continue reading Introducing Social Investment Tax Relief
As widely predicted, the Chancellor has announced reductions to the limits for tax-relieved pension contributions. With effect from 2014/15, the annual limit will be reduced from £50,000 to £40,000 and the lifetime limit from £1.5million to £1.25 million. Those looking for compensatory income tax relief may soon be able to use their annual ISA … Continue reading Pensions, AIM and ISAs – a day of mixed fortunes for individual investors
Interestingly, the Government will restrict an individual’s ability to claim income tax reliefs on an annual basis with effect from 6 April 2013. A new cap of the greater of £50,000 and 25% of income will apply to any individual seeking to claim more than £50,000 in tax reliefs. Importantly, we understand that the new cap will … Continue reading Personal tax reliefs restricted
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
A lot of mixed messages in today’s Budget for the games industry. The proposal to significantly improve EIS and VCT reliefs, in particular, by increasing the annual investment limit to £10 million from £2 million (albeit with effect from 6 April 2012) should assist games companies in obtaining development finance. EIS relief becomes much more interesting at this level. We … Continue reading A mixed bag for games companies
We are delighted that the Government has recognised the need to encourage investment in high risk start up companies through proposed improvements to the EIS and VCT rules but the question is does it go far enough ? The proposed changes should be beneficial for the creative and technology industries for whom access to finance continues to be challenging. Whilst … Continue reading A good day for high risk start ups?
No surprises here ! After weeks of speculation the Government appear to have closed down a loophole which enabled you to circumvent the £2 million limit per EIS/VCT company by amalgamating funds through partnerships. A new definition of small enterprise is proposed. It appears that the Government view is that funding large projects with EIS monies intended to promote high risk start up companies is not within the spirit of … Continue reading EIS/VCT restrictions