View more on these topics

Close to raise Enterprise VCT cap

Close is to raise the maximum subscription for shares in the Enterprise VCT from £20 to £30m in a bid to catch elevated investor demand.

The decision comes in reaction to the changes made in last week’s budget that restrict further investment by venture capital vehicles.

New rules mean that as of 6 April 2007, VCTs will no longer be able to invest in companies with more than 50 employees, with those that are still eligible not able to raise more than £2m in VCT funding per tax year. To counteract this, VCT managers have been given more flexibility in remaining within the qualifying investment limits.

Close Ventures managing director Patrick Reeve says: “While some of these changes are helpful, others are less so. Those affecting the size of the company and the amount invested are quite a suprise and appear to be in response to an EU directive focusing on Government assistance to industry. They could certainly have an impact on demand for VCTs in the future and we would like to explore these further with the Treasury.

“The important thing to make clear is that the changes have absolutely no impact on current VCT fundraising.”

Close Investments head of advisory sales Matthew Brown says: “We recieved over £4m in applications for the Close Enterprise VCT in the last few days before the budget, signalling the start of the usual end of tax year rush. With only a few working days left until the end of tax year we now anticipate a compounding in demand which could lead to a shortage in supply from those managers with a proven track record, so we have aimed to increase capacity to accommoadate this.”

Recommended

Door shut on FTBs as prices soar

Today’s changes will do nothing to help first-time buyers to get on to the ladder as advancing house prices outstrip ann-ual pay awards and more people are caught by stamp duty.Brown had the chance to address FTB costs by raising the £125,000 entry band for stamp duty. He should also have altered the £250,000 and […]

Back to the future

Lucian Camp, chairman of advertising agency cchm:ping, reckons this year’s Isa advertising is very much a case of repeat performances.

Independent examiner to probe DWP complaints

The Department for Work and Pensions has appointed an independent case examiner to consider complaints from customers dissatisfied with the way that their complaints have been handled by the department.Lawyer John Hanlon, who was previously regulator of Community Interest Companies and Commissioner for the Scottish Care Commission, takes on the role next month. His job […]

BUDGET REACTION: Law firm warning over VCT & EIS changes

Budget changes to enterprise investment schemes and venture capital trusts could stifle investment, law firm Osborne Clarke warns.The Chancellor announced the introduction of tests yesterday including an employee headcount test and overall investment limits that must be met for investors to take advantage of tax relief schemes on EISs and VCTs. In future on the […]

India budget: BJP focuses on growth

By Kunal Desai, Head of Indian Equities

With markets kept open on Saturday, finance minister Arun Jaitley delivered a promising budget focused on growth and decentralisation. While many complained about a six-day working week, there was much to be pleased about and the markets rallied in the afternoon to finish in the green.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com