New risk criteria for venture capital schemes

Important changes for venture capital schemes and enterprise investment have recently come into effect.  New ‘risk-to-capital’ conditions apply to investments in venture capital trusts (VCTs), enterprise investment schemes (EISs) and seed enterprise investment schemes (SEISs). The changes took effect on 15 March 2018, when the Finance Act 2018 received Royal Assent. Broadly speaking, an EIS…

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Venture capital schemes and the Budget

Venture Capital Schemes

The Autumn Budget included a raft of measures focused on venture capital schemes. The writing was always on the wall after a Treasury consultation issued in August posed the leading question, “Are there areas where the cost effectiveness of current tax reliefs could be improved, for example reducing lower risk ‘capital preservation’ investments in the…

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Rise in popularity for venture capital trusts

New figures from HMRC show a large jump in investments in venture capital trusts in 2016/17.  In September HM Revenue & Customs (HMRC) issued updated statistics on the funds raised by venture capital trusts (VCTs). These showed that investment during last tax year reached £570m, an increase of over 28% on 2015/16. This was the…

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Changes ahead for venture capital schemes?

Changes ahead for venture capital schemes?

A consultation paper issued in August could mean changes to venture capital schemes. At the start of the holiday season the Treasury issued an open consultation paper entitled “Financing growth in innovative firms”. Its focus was on what has become known as ‘patient capital’, which the Treasury defined as “long-term investment in innovative firms led…

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