Source · Select Committees · Treasury Committee
Recommendation 1
1
Accepted
Venture capital tax reliefs (EIS, SEIS, VCTs) positively impact UK small businesses
Conclusion
Industry and government are aligned in their assessment that venture capital tax reliefs have had a positive impact on UK small businesses. They argue that the EIS, SEIS and VCTs are internationally competitive schemes that attract investors, which in turn has provided billions in financial support to start-ups and growing businesses since their inception. It is a consistently held view in our evidence that the removal of these schemes would negatively impact the UK venture capital market, materially limiting the support to entrepreneurs to help establish and grow their businesses. (Paragraph 16) Sunset clauses on venture capital reliefs
Government Response Summary
The government agrees that EIS and VCT sunset clauses should be extended, and the Chancellor has publicly stated his firm intention to do so beyond April 2025. Further details will be provided at a future fiscal event.
Government Response
Accepted
HM Government
Accepted
HM Treasury agrees with the Committee that the EIS and VCT sunset clauses should be extended, and the Chancellor has stated his firm intention to extend the schemes beyond the current sunset clause on 6 April 2025. HM Treasury recognise the need to provide certainty to founders and investors and will provide further details on the schemes beyond 2025 at a future fiscal event.