Treasury confirms extension to VCT and EIS sunset clause

investmentweek.co.uk:

Chancellor of the Exchequer Jeremy Hunt had previously signalled his agreement with the TSC to continue the scheme in previous correspondence, but this is the first time he has committed to an extension.

The extension was announced in its response to the Treasury Committee's Venture Capital report from in the summer, stating it «recognises the need to provide certainty to founders and investors», adding it would provide «further details on the schemes beyond 2025 at a future fiscal event».

Chancellor of the Exchequer Jeremy Hunt had previously signalled his agreement with the committee to continue the scheme in previous correspondence, but this is the first time he has committed to an extension.

MPs call for Treasury to set out clear plans on EIS and VCT extension

In a letter sent to to the financial and economic secretaries to the Treasury today (20 October), the chair of the committee Harriett Baldwin thanked them for their responses and said the committee was «pleased to hear that HM Treasury shares our overall priorities with regard to the UK venture capital market and look forward to the development of your policy in the coming months».

She addressed the lack of a formal date for the extension however, and «urge you to not delay providing certainty to the market».

The Treasury disputed several other recommendations put forward in the committee's summer report, including bringing in a provision to make diversity statistics s a requirement for eligibility to receive EIS, SEIS and VCT tax reliefs.

The committee had recommended that «firms should be required to disclose the gender and ethnic breakdown of both recipients of their funding and their own staff. This should take effect from the renewal of the sunset