The European Commission has enhanced its State Aid approval for Venture Capital Trusts, allowing the UK Government to make a number of changes to the rules surrounding the vehicles.
The size of businesses that can receive funds from VCTs can now be increased from firms with £7m in assets to those with £15m, while the maximum headcount at companies can be lifted from 50 employees to 250.
In addition, qualifying businesses will be able receive £5m in VCT funding, up from the current £2m.
Ian Sayers, director general of the AIC, says the investment freedoms created by the move will lead to “exciting opportunities” for VCTs and the enterprises they invest in.
He says: “Convincing the commission that VCTs should be able to invest in a wider range of business has been a demanding task,”
“The Government’s determination to see these negotiations through has been invaluable and delivered an excellent result.”