Budget 2015: VCT/EIS changes cause confusion

Alice Rigby
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Commentators have warned Chancellor George Osborne's new rules for VCT,EIS and SEIS investments, announced in the Budget, could create confusion and crowding in certain parts of the market.

George Osborne announced a cap of £15m on the amount small companies would be able to receive from tax-advantaged venture capital schemes, to  ensure they comply with EU state aid regulations. This level would increase to £20m for so-called "knowledge-intensive" companies, where the maximum staff size required under the VCT rules will increase to 499 employees (from 249). However, it is currently unclear whether this new cap replaces or is in addition to the annual £5m cap a business can receive in the form of VCT investment. Meanwhile, the age of companies at the point of initial ...

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