The Lemon Fool

Dear Fools,

I couldn't see anything at all about taxation on VCTs and the EIS in today's budget, so I assume it is no change.

Or have I missed something?

Gostevie

At the ProVen annual event today Philip Hare was presenting. He had a slide on changes in the 2018 Budget for VCTs which was blank!

As an aside he ran through the VCT reliefs with which we have become familiar. He raised one new wrinkle (to me anyway) and that is leaving more than £200k of VCTs to your spouse will cause the excess over £200k to be treated as non VCT eligible (acquisition in excess of £200k in a year)and thus subject to tax on dividends and capital gains. However passing them on while you are alive causes no such problems.

ProVen argued that keeping two separate funds gave the manager flexibility against future unknown rule changes. It also provided flexibility to shareholders by enabling them to sell out of one fund after 5 years and buy back in the other.

Gostevie wrote:Dear Fools,

I couldn't see anything at all about taxation on VCTs and the EIS in today's budget, so I assume it is no change.

Or have I missed something?

Gostevie

https://citywire.co.uk/wealth-manager/n ... 0/a1170225

A new Enterprise Investment Scheme (EIS) fund structure will be introduced from April 2020.

In a paper accompanying the 2018 Budget, ...


I think they are referring to page 20 here https://assets.publishing.service.gov.u ... ay_PDF.pdf

2. Measures Not in the Finance Bill 2018-19 … 2.2. Enterprise Investment Scheme (EIS) knowledge-intensive fund structure

Following a policy consultation carried out during spring 2018, the government will legislate in Finance Bill 2019-20 to reform the Enterprise Investment Scheme (EIS) rules for approved funds. … The government plans to publish draft legislation for consultation in summer 2019. The changes will have effect from 6 April 2020.

PinkDalek wrote:Following a policy consultation carried out during spring 2018.

Oh dear. That'll be viewtopic.php?f=25&t=11126 . I wonder what they think they learned? I guess they'll have spun it to support their desired outcome - whatever that might be.

UncleEbenezer wrote:

PinkDalek wrote:Following a policy consultation carried out during spring 2018.

Oh dear. That'll be viewtopic.php?f=25&t=11126 . I wonder what they think they learned? I guess they'll have spun it to support their desired outcome - whatever that might be.

I had a look back at that thread but it doesn't link to the Consultation.

I'm sure you'll enjoy it:

https://www.gov.uk/government/consultat ... nsultation

127tolmers wrote:ProVen argued that keeping two separate funds gave the manager flexibility against future unknown rule changes. It also provided flexibility to shareholders by enabling them to sell out of one fund after 5 years and buy back in the other.

I couldn't agree more! The merger of Amati 1 with Amati 2 snookered such a 5-year buy back plan.