The EIS and VCT sunset clause has been extended to 2035 in this week’s Autumn Statement, providing certainty for entrepreneurs and investors in young companies at the heart of the UK economy.
Venture Capital Trusts and the SEIS and EIS schemes provide vital tax incentives for private investors to invest in exciting early-stage companies.
Confirmation the sunset clause will be extended by 10 years to 2025 removes uncertainty for investors and managers, and demonstrates the government’s support for the UK’s entrepreneurs.
The tax benefits available to UK investors wishing to invest in early-stage companies are among the most generous in the world.
“It’s excellent news that the Chancellor has committed to extending VCTs’ sunset clause to 2035. This addresses an urgent issue as the sunset clause would have automatically ended VCT tax relief in April 2025. The extension to 2035 will help provide certainty to investors and businesses and enable VCTs to continue supporting UK growth companies,” said Richard Stone, Chief Executive of the Association of Investment Companies (AIC).
“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.”