The VCT Association and the AIC have both welcomed the news that the VCT and EIS “Sunset Clause” has been extended for another 10 years.
The European Commission has confirmed its decision “not to raise objections” to the prolongation of both the Venture Capital Trust (VCT) and the Enterprise Investment Scheme (EIS) schemes.
This decision ensures that VCTs can continue offering their current tax reliefs until 5 April 2035. After this date further approval will be required.
Chris Lewis, Chair of the VCT Association, commented: “The extension of the Sunset Clause will be welcomed by all those in the VCT & EIS sectors. This includes our VCTA members and the many entrepreneurs and scale-up businesses which they support. We look forward to continuing our dialogue with HM Treasury to confirm the details of this extension.
This a very good day for the UK’s VCT community.”
Richard Stone, chief executive of the Association of Investment Companies (AIC), added: “This is excellent news for investors and businesses as it provides certainty that VCTs can continue to support the UK’s small and ambitious companies.
“This confirms the continuation of VCTs’ key role in providing funding and support to the UK’s smaller businesses, a key driver of economic growth. VCTs have many advantages for investors, including good long-term performance and their investee companies create jobs and social benefits for local communities.”
