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Move to align VCTs and EIS is ‘dangerous nonsense’

Tax Efficient Review editor Martin Churchill has slammed the Office of Tax Simplification’s plans to align time limits and conditions for venture capital trusts and the enterprise investment scheme as “dangerous nonsense”.

In its final report on tax simplification, published last week, the OTS suggests that the conditions to be met for investors and the investee company should be rewritten in a simpler form to make it easier for taxpayers to determine eligibility.

The OTS also suggests that the Government considers aligning the time limits and conditions for EIS and VCTs. Minimum investment for a VCT is five years and three years for an EIS.

But Churchill says investors do not need admin simplification. He says: “To say they should be aligned is dangerous nonsense. If all they try and do is simplify the admin, they will be dragging along untold changes for IHT, CGT and income tax situations.”

He says: “The EIS may lose its inheritance tax benefit, such as property relief. Who cares if it is simple, the Government needs to make sure that it is effective.”

The OTS report higlights business suggestions that the EIS £2m annual limit should be raised or removed as well as looking at whether the two-year window for using funds should be extended and if the 50-employee limit should be reviewed.



FSA prepared to revisit the long-stop

FSA chief executive Hector Sants says the regulator will look again at introducing a 15 year long-stop if the Treasury select committee recommends it should. Giving evidence to the Treasury select committee on the RDR this afternoon, FSA chief executive Hector Sants said the last review of the long stop was in 2007 and it […]

Fund stars warn on UK trackers

Leading UK equity income managers Bill Mott and Tony Nutt have warned investing in UK index trackers carries significant risks at present with their heavy exposure to the natural resources sector. PSigma income manager Bill Mott says he has concerns that people investing in UK trackers think they are getting exposure to the UK economy […]

Andrew Tully quits Standard Life for MGM

MGM Advantage has appointed Standard Life senior pensions policy manager Andrew Tully to the newly created role of retirement income technical manager. Tully (pictured) spent 18 years at the provider, focusing on analysis of the pensions environment and legislative and regulatory changes. Tully says: “The retirement income market will be a fast-moving environment over the […]


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