Autumn Statement 23: VCT and EIS sunset clauses extended by a decade
The government said it will extend them by a decade to 6 April 2023, after the Treasury confirmed last month the clauses would be expanded to April 2025.
In today's (22 November) Autumn Statement, the government said it will extend these by a decade to 6 April 2035, after the Treasury confirmed last month the clauses would be extended to April 2025.
Treasury confirms extension to VCT and EIS sunset clause
Richard Stone, CEO of the Association of Investment Companies, said the extension was «excellent news» addressing «an urgent issue, as the sunset clause would have automatically ended VCT tax relief in April 2025».
He said the move will help provide certainty to investors and businesses as well as enable VCTs to «continue supporting UK growth companies».
«VCTs play a vital role in providing funding and support to small, ambitious UK businesses, a key driver of economic growth. The AIC will continue to work with the government as the legislation passes through parliament and we hope this measure will unlock further investment,» he added.
Jason Hollands, managing director of investment platform Bestinvest, agreed with Stone, noting the sunset clause was a requirement under the EU state-aid directives.
However, Hollands argued the government could have made such schemes permanent as a «demonstrable example of greater flexibility the UK now has outside of the EU regulatory orbit».
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He added: «Given the government's drive to encourage greater capital for UK fledgling companies, they have also missed an opportunity to go further and give a shot-in-the-arm to these schemes.
»The annual amount that can be subscribed to VCT share issues and benefit from income tax
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