Tax-advantaged venture capital schemes - CIOT comments
The CIOT comments, sent to HM Treasury on 19 September 2011, regarding the consultation which looks at the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs), setting out a number of reform options aimed at improving the effectiveness of the EIS and VCTs.
Our submission and the consultation document to which it refers are available in Adobe (pdf) format.
The consultation also proposes a new scheme aimed at seed investment: the Business Angel Seed Investment Scheme (BASIS). The aim of this consultation is to gather views and evidence from stakeholders on a the new scheme and the proposed reforms for the EIS and VCTs.
The document is organised around three main themes:
- additional support for seed investment via the creation of a new scheme;
- simplification of the current schemes; and
- refocusing of the current schemes to ensure they remain appropriately targeted.
The Government announced at Budget that feed-in tariff (FITs) businesses would be added to the excluded activities list from 6 April 2012. In accordance with the new tax policymaking process, the Government is publishing draft legislation for comment. FITs are also the subject of a consultation considering these from a capital allowances perspective.
19 September 2011