Tax Notes Update – Why you should read the tax legislation (and other news)

 Miscellaneous, Statutory Interpretation  Comments Off on Tax Notes Update – Why you should read the tax legislation (and other news)
May 212015
 

My article on the new rules for VCTs – Venture Capital Trusts – have they become riskier? – has been published by online magazine Which Investment Trust. Hooray!

It always gives me special pleasure to see one of my articles published by someone else, rather than just on my own site. It means that someone else actually likes my articles enough to consider them worth publishing!

And I must say at this point that it is a real pleasure also to be working with Dice McCairn, the editor of Which Investment Trust. Dice contacted me via the Tax Notes Contact page and suggested I contribute to his site. I have found him to be very professional and efficient, always returning my emails promptly – a real Godsend compared to some of the editors I have worked with in the past. Continue reading »

Budget 2015 – Changes to the Venture Capital Schemes and EU State Aid

 Investment Tax, Venture Capital Schemes  Comments Off on Budget 2015 – Changes to the Venture Capital Schemes and EU State Aid
Apr 222015
 

UPDATE

This article was written shortly before the Summer Budget of 2015. Since then, some of the measures have been modified and are now enacted in F(No 2)A 2015, together with the introduction of a new blanket prohibition on using the funds raised to acquire shares in another company. For VCTs this puts a damper on the practice of raising money to finance management buy-outs.

One of the announcements made during Budget 2015 was a series of measures aimed at tweaking the Venture Capital Schemes so that they are in line with EU State Aid rules.

There are four Venture Capital Schemes, though the rule changes affect just two of them, the Enterprise Investment Scheme (“EIS”), and the Venture Capital Trust Scheme (“VCT”). The other two schemes are the Seed Enterprise Investment Scheme (“SEIS”) and the Social investment Tax Relief Scheme (“SITR”) introduced last year. Continue reading »

Jul 122013
 

Please note, this table and the commentary are out of date. A more up to date version which takes into account the new Social Enterprise Investment Scheme can be found here

There are three types of Venture Capital Scheme, each one with tax breaks to induce investors to part with their hard earned money. The following table is a summary of these tax breaks, together with the relevant statutory provision. Continue reading »