Changes to definitions for VCT and EIS investments
The deadline for comments on the new draft legislation for theEnterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) has been partly extended.
The two schemes received approval for State Aid on 29 April 2009 subject to the following changes being made in UK legislation:
Applying a new requirement that to qualify under either scheme, a company must not be in difficulty
Replacing the requirement that to qualify under either scheme a company must carry on its qualifying trade wholly or mainly in the UK, with one that the company must have a permanent establishment in the UK
Removing the requirement that a VCT’s shares must be included in the official UK List and replacing it with one that their shares must be traded on an EU regulated market
Changing the rules governing the amount of a VCT’s investment that must be held as equity.
The deadline for comments on the above proposed changes remains 1 February 2010.
The draft legislation also proposes that only ‘small’ companies should qualify under the EIS and VCT schemes. The definition of ‘small’ being that which applies for other tax and accounting purposes in accordance with the European Commission’s standard definition.
The deadline for comments on this change has been extended to 12 March 2010.
Comments can be sent by email to email@example.com or by post to David Harris, HM Revenue and Customs, Area 3/36, 100 Parliament Street, London SW1A 2BQ.