Removal of Sunset Clause

[Vulgaris]

This AM's 'bold' budget has, among the small print:

1) Removed the 2025 Sunset Clause on EIS and VCTs - this apparently stemmed from EU rules, which are being bonfired.

2) Raised the SEIS limit from £150,000 to £250,000

https://ifamagazine.com/article/huge-bo ... eis-level/

https://www.ftadviser.com/investments/2 ... -extended/

Needless to say, the present regime may go belly up, delivering us to a leftist govt in 2024, in which case this may change again, and for the worse.

But, for the time being, it looks like the Inquiry, to which some of us contributed has been suspended and superseded by this extension.

[UncleEbenezer]

This AM's 'bold' budget has, among the small print:

1) Removed the 2025 Sunset Clause on EIS and VCTs - this apparently stemmed from EU rules, which are being bonfired.

2) Raised the SEIS limit from £150,000 to £250,000

https://ifamagazine.com/article/huge-bo ... eis-level/

https://www.ftadviser.com/investments/2 ... -extended/

Needless to say, the present regime may go belly up, delivering us to a leftist govt in 2024, in which case this may change again, and for the worse.

But, for the time being, it looks like the Inquiry, to which some of us contributed has been suspended and superseded by this extension.

Thanks for posting from the relevant smallprint.

Not unexpected: VCT/EIS tax breaks are carefully targeted, and periodically revised when the targeting seems anomalous (like closing off the MBO gravy-train).

For the same reason, I don't see a prospective Labour government as a threat to the breaks. NuLab understood and appreciated the role of VCTs and EIS, and none of their successors have made an issue of it. They'll tinker of course, but I'm pretty sure they still recognise these golden eggs, and the costs to HMRC are a drop in the ocean of today's fiscal incontinence.

If a future government of any complexion abolishes our breaks, it'll be because the economy has fundamentally changed in some way. The nearest we've seen to that since the 1970s was probably the central government micro-management favoured by our last Prime Minister and, at least to some extent, his last chancellor.

[Spet0789]

This AM's 'bold' budget has, among the small print:

1) Removed the 2025 Sunset Clause on EIS and VCTs - this apparently stemmed from EU rules, which are being bonfired.

2) Raised the SEIS limit from £150,000 to £250,000

https://ifamagazine.com/article/huge-bo ... eis-level/

https://www.ftadviser.com/investments/2 ... -extended/

Needless to say, the present regime may go belly up, delivering us to a leftist govt in 2024, in which case this may change again, and for the worse.

But, for the time being, it looks like the Inquiry, to which some of us contributed has been suspended and superseded by this extension.

Small correction. SEIS £100k to £200k

[Vulgaris]

@Spet:

Think we're both right.....

Limit on how much a company raises under SEIS goes from £150,000 to £250,000

Annual SEIS limit for investor goes from £100,000 to £200,000

https://www.freshbusinessthinking.com/m ... 13.article

[Karellan]

Needless to say, the present regime may go belly up, delivering us to a leftist govt in 2024, in which case this may change again, and for the worse.

But, for the time being, it looks like the Inquiry, to which some of us contributed has been suspended and superseded by this extension.

It was Gordon Brown in a Labour Government that put the VCT tax relief up to 40% in 2004 so there is precedent for them being sympathetic.

[sinterklaas]

They havent actually

removed the 2025 Sunset Clause on EIS and VCTs

quite yet — just indicated they plan to, which is a good start. But it only implies the schemes continue, with no guarantee the current rules remain unchanged. Mood does seem different with present officials but I for one will not rest easy until we see the details of the relevant Bill.