Recent changes to the EIS and VCT rules make it more difficult for many overseas companies to qualify. Robert Langston sets out potential solutions
The changes made to the Enterprise Investment Scheme (EIS) and the Venture Capital Trust (VCT) rules by Finance (No. 3) Act 2010 – and in particular the removal of the requirement that a qualifying trade is carried on in the UK – have attracted favourable coverage.
Even the Regulatory Impact Assessment issued by HMRC said that ‘Relaxing territorial restrictions should see more companies and individuals using the schemes.’
The removal of the UK trade requirement was to ensure compliance with EU state aid rules. However this requirement has been replaced with a UK permanent establishment requirement which introduces considerable problems for overseas companies looking to raise money under the EIS.
From 6 April 2011 the...
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Recent changes to the EIS and VCT rules make it more difficult for many overseas companies to qualify. Robert Langston sets out potential solutions
The changes made to the Enterprise Investment Scheme (EIS) and the Venture Capital Trust (VCT) rules by Finance (No. 3) Act 2010 – and in particular the removal of the requirement that a qualifying trade is carried on in the UK – have attracted favourable coverage.
Even the Regulatory Impact Assessment issued by HMRC said that ‘Relaxing territorial restrictions should see more companies and individuals using the schemes.’
The removal of the UK trade requirement was to ensure compliance with EU state aid rules. However this requirement has been replaced with a UK permanent establishment requirement which introduces considerable problems for overseas companies looking to raise money under the EIS.
From 6 April 2011 the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
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