Venture capital schemes consultation
Autumn Statement update
Following the consultation over the summer on Venture Capital Schemes, the Chancellor announced the following in his Autumn Statement yesterday:
- the launch of a new Seed Enterprise Investment Scheme (SEIS) from April 2012, offering 50 per cent income tax relief on investments and a capital gains tax exemption on gains realised in 2012–13 and then invested through SEIS in the same tax year. There will be an annual investment limit for individuals of £100,000 and a cumulative investment limit for companies of £150,000;
- the proposed simplification of the EIS and VCT schemes will go ahead; and
- the £1 million investment limit per company for VCT schemes will be removed to reduce the administrative burdens of the scheme.
Draft legislation is expected to be published on 6 December setting out the details of the above proposals.
In relation to R&D, the Chancellor confirmed the introduction of an ‘above the line’ tax credit in 2013 to encourage R&D activity by larger companies. The Government will consult on the detail at Budget 2012, but it has confirmed its intention to ensure that SME R&D incentives are not reduced as a result of this change.
We are expecting draft legislation on the 'Patent Box', reform of the Controlled Foreign Company rules and other changes to R&D tax credits on 6 December.
Click the links below for further information:
Our response to the Venture Capital Schemes consultation
Our detailed analysis of the consultation
Lawyers Peter Jackson, Robert Young, Nikol Davies, Michelle Williamson
