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 first all-Tory Budget of this most political of Chancellors will have to balance his stated commitment to cut government spending by £30bn over the next two years with his self-denying ordinance prohibiting increases in NICS, VAT or income tax in this Parliament. He will want to get the economic pain over with as soon … Continue reading July Budget: what we’re expecting
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 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