The Chancellor, Kwasi Kwarteng, revealed that the VCT schemes and both the Enterprise and Seed Enterprise Investment Schemes (EIS and SEIS) will extend beyond their current 2025 deadlines, in a bid to boost UK entrepreneurship. "The government remains supportive of the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) and sees the value of extending them in the future".
Bill Nixon, Managing Partner at Maven, commented: “The announcement today by newly appointed Chancellor Kwasi Kwarteng that the so called ‘sunset clause’ is being effectively set aside for VCTs and EIS, is very welcome news for entrepreneurs and early stage investors in the UK. Although the current legislation ensures that the current reliefs will be available until 2025, the confirmation that this date will be extended gives long term certainty to a vital sector of business and finance that is backing younger, high growth companies focussed on generating shareholder value, and at the same time helping the wider economy through the creation of high value jobs and improved tax revenues. This is a positive step by the new government who are to be commended for acting quickly to remove any uncertainty with this legislation and for helping to ensure that the availability of equity finance in support of business creation and growth continues to be available across the UK SME market.”