Taylor Wessing responds to new VC tax relief proposals
On 6 July this year the Government published the "Tax-Advantaged Venture Capital Schemes" consultation. The consultation considers tax reliefs for investment in small, high risk businesses, including "seed" investment in start up enterprises, and was intended as a platform for gathering views and evidence from stakeholders in relation to (a) a proposed new scheme to support seed investment (the Business Angel Seed Investment Scheme (BASIS)) and (b) a number of reform options aimed at improving the effectiveness of the existing Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) scheme.
The consultation focuses on three main areas, namely:
- additional support for seed investment;
- simplification of the current EIS and VCT legislation; and
- refocusing the schemes to ensure they remain appropriately targeted.
We have submitted comments on the consultation, which closes on 28 September, focusing particularly on the definition of "seed-stage companies", the definition of "business angels" and the types of investment in relation to which relief may be claimed.
Our response to the consultation
Our detailed analysis of the consultation
Lawyers Peter Jackson, Robert Young, James Meakin, James Stewart
