Jun 022015

I’ve finally managed to update that table! It wasn’t easy getting it all on one page. Last time there were only three Venture Capital Schemes, now there are four, with the addition of the Social Enterprise Scheme. Soon we shall have a fifth in the form of the Social VCT.

What have I done?

The actual table has been converted to pdf format for people to download. You need to print it out on A3 paper – that was the only way available to me of fitting everything in one page. The table contains not just a summary of the tax breaks but also references to the legislation.

For the commentary, I decided to have a separate page dedicated to The Venture Capital Schemes, which you can find by looking at the navigation bar of this site. This will make it a lot easier to locate.

No more Venture Capital Scheme work for now. I’ve had more than my fill. Let’s just hope no more changes are on the way this July.

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Satwaki Chanda

Satwaki Chanda

Satwaki Chanda is a tax lawyer with a First Class degree in Mathematics. Called to the Bar in 1992, he is the Editor of Tax Notes.
Satwaki Chanda

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  3 Responses to “The Venture Capital Schemes – A Summary of the Tax Breaks – Updated June 2015”

  1. Hi Satwaki

    I found your notes and table on the venture capital schemes very interesting.

    I had one query . I had understood that you could claim EIS deferral relief for capital gains even if you owned say 100% of the shares of a company. This would not qualify a person for the ‘upfromt relief’ as it exceeds 30% and would make the person ‘connected’ with the company. Is the table correct where it refers under CGT Reinvestment Relief for EIS where it says ‘must be eligible for upfront relief?

    I would be interested in your views.

    Jay Sanghrajka

    • Satwaki Chanda

      Jay thank you very much for taking the time to read the article. And thank you for your question.

      You are quite right – the fault is mine. I was trying to use an expression which would convey that there are certain conditions you need to satisfy to claim the deferral relief, and these conditions are very similar to those of upfront relief. And also to be able to get it to fit one page of the table!

      E.g. you can see the similarities in the list set out in the legislation for EIS at TCGA 1992 Schedule 5B paragraph 1. So at paragraph 1(2)(b) we find reference to the investment being in a “qualifying company” and that takes us back to the conditions for upfront relief in the income tax legislation.

      But the match is not exact, and the situation you describe wouldn’t disqualify for the deferral.

      I shall give it some thought and try to come up with a better way of phrasing it. And hopefully we can still have a table that fits one page, albeit a very big page!

      Thank you again for your comments.

    • Satwaki Chanda

      Further to my previous comments, I have now amended the above article and the table accordingly. Thank you again to Jay for bringing this to my attention.

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