VCTs and EIS set for a surge
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Venture capital trust and enterprise investment scheme business could rise sharply after the rise in capital gains tax.
Tax Efficient Review editor Martin Churchill says: “VCTs are attractive enough already but this will make them even more attractive because they have not been changed. There are very good tax breaks attached to VCTs and the EIS. I see this as another tick in the VCT box this year.”
Longbow Capital partner Julian Hickman says he would have liked to have seen the rules eased on which businesses VCTs and the EIS can invest in but the CGT rise is a “silver lining” for the sector. He says: “With the immediate rise in CGT, we anticipate a swift increase in interest for the EIS. Investors will be keen to know how they can reduce yet another increase in their personal taxation while contributing to driving innovative British companies forward.”
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