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Low-risk venture capital trusts (VCTs) could have their tax reliefs removed due to government concerns they are not stimulating small business
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Low-risk venture capital trusts (VCTs) could have their tax reliefs removed due to government concerns they are not stimulating small business.
Susan Phillips (pictured), director general of trade body the Enterprise Investment Scheme Association, said the investments were under renewed threat from the government, which scrutinised them before the Budget.
She said the Treasury was focusing on VCTs that marketed themselves as low risk with short investment periods and underwritten returns, and said their tax reliefs could be cut in next year’s Budget.
‘VCTs were going to go because of concerns over the enterprise element and I think they are still in danger,’ she said.
Phillips added that Treasury plans for a new enterprise investment scheme-type structure, the Business Angel Seed Investment Scheme (Basis), could be delayed due to concerns the smaller ventures it would target would not be prepared for the level of investment.
Draft legislation for Basis was planned for December, but Phillips said the delays meant the scheme was unlikely to feature in next year’s Finance Bill. |
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