Published: Nov 22, 2023
Focus: Growth Capital
The Chancellor, Jeremy Hunt, has confirmed in his 2023 Autumn Statement that the Venture Capital Trust (VCT) and Enterprise Investment Schemes (EIS) have been extended to April 2035. The Government announced last year that it intended to extend the deadline applying under the sunset clause beyond 2025 and today’s announcement has confirmed that.
For almost 30 years, VCTs have been instrumental in supporting ambitious, early-stage UK companies, helping to foster innovation and growth, and drive job creation. Without these schemes access to finance for many emerging businesses would be severely constrained and have an impact on their ability to grow.
Today’s announcement (22 November 2023) removes any uncertainty, for both investors and entrepreneurs, on the future of VCTs and secures a crucial source of funding for SMEs, vital in these times of economic uncertainty.
“Today’s announcement by the Chancellor Jeremy Hunt that the ‘sunset’ clause deadline is being extended for VCTs until April 2035 is very welcome news for both investors and entrepreneurs. It gives certainty that VCTs can continue to support UK growth companies.
VCTs have been very successful, providing billions in capital for early-stage UK businesses and generating significant shareholder value for investors. Companies backed by VCTs have created thousands of jobs throughout the UK, with a number becoming unicorns. It’s a unique funding model that has prompted other countries such as France and Ireland to adopt their own versions.
By extending the scheme, we can now support the cross party consensus which recognises that early stage companies are the engine of growth across the UK, generating skilled employment opportunities and driving innovation.”
Ewan MacKinnon, Partner at Maven