The tax impact information note on the Finance (No.2) Bill 2015 changes to enterprise investment scheme (EIS) and venture capital trust (VCT) rules was updated in October 2015, replacing the versions published on 24 March and 8 July 2015, to include the amendment to the list of excluded activities tabled at report stage of the bill. See www.bit.ly/208sruB.
The changes will: limit to seven years the age of companies eligible for investment under EIS and VCT; cap at £12m the total amount of tax-advantaged investment that companies may receive over their lifetime; stop the use of EIS and VCT money for acquisitions of businesses; provide that investors are independent from companies in which they invest; introduce higher limits for knowledge intensive companies; and smooth the interaction between seed enterprise investment schemes (SEIS) and EIS.
It was also confirmed at the Public Bill Committee’s third sitting that the EC has given the government state aid approval for these EIS and VCT rule changes contained in Finance (No.2) Bill 2015 Schs 5 and 6. The government plans to introduce regulations at a later date, subject to state aid approval, to allow the use of ‘replacement capital’ within EIS and VCT schemes.
The tax impact information note on the Finance (No.2) Bill 2015 changes to enterprise investment scheme (EIS) and venture capital trust (VCT) rules was updated in October 2015, replacing the versions published on 24 March and 8 July 2015, to include the amendment to the list of excluded activities tabled at report stage of the bill. See www.bit.ly/208sruB.
The changes will: limit to seven years the age of companies eligible for investment under EIS and VCT; cap at £12m the total amount of tax-advantaged investment that companies may receive over their lifetime; stop the use of EIS and VCT money for acquisitions of businesses; provide that investors are independent from companies in which they invest; introduce higher limits for knowledge intensive companies; and smooth the interaction between seed enterprise investment schemes (SEIS) and EIS.
It was also confirmed at the Public Bill Committee’s third sitting that the EC has given the government state aid approval for these EIS and VCT rule changes contained in Finance (No.2) Bill 2015 Schs 5 and 6. The government plans to introduce regulations at a later date, subject to state aid approval, to allow the use of ‘replacement capital’ within EIS and VCT schemes.
