Currently the investment trusts can only put £1m into companies, but under proposals outlined by Chancellor George Osborne in his pre-Budget statement, VCTs will be free to put more equity capital into small businesses in a bid to kickstart the economy.
“The government will remove the £1m investment limit per company for VCTs to reduce the administrative burdens of the scheme,” the statement explains. Osborne has not budged on tax relief for the trusts, which will remain at 30 per cent. Further relief comes through a relaxation of the Enterprise Investment Scheme, Downing Street easing the connected person rules and definition of shares that qualify for breaks. Mark Florman, chief executive of the British Private Equity and Venture Capital Association, said the statement is the “right response” to the threat of the eurozone crisis. He added: “The further liberalisation of the EIS and VCT schemes will also play a valuable part in sustaining and supporting the start-up business community through what will clearly be a challenging 12 to 18 months for the British, European and international economies.” Read more from our sister title Real Deals.
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.