VCM1010 - Venture Capital Schemes: Latest updates in the venture capital scheme manual: what's new
Finance Act 2018-19 introduced the following changes:
Risk to Capital condition
ITA07/S157A for EIS; ITA07/S257AAA for SEIS ITA07/S286ZA for VCTs;
Investments made on or after 15 March 2018 under the EIS, SEIS and VCTs must meet the risk-to-capital condition. The company will have to demonstrate that it has objectives to grow and develop its trade in the long term, and, the investment must carry a significant risk.
Relevant investment
ITA07/S173A for EIS; VCT ITA07/S292AA; SITR ITA/S257MNB/ MNA
Amends the definition of 바카라 사이트榬elevant investments바카라 사이트�. All risk finance investments are counted towards the lifetime funding limit for companies receiving investment under the tax-advantaged venture capital schemes. For the EIS and VCTs, the limit is 拢12 million for most companies and 拢20 million for knowledge-intensive companies. For SITR, the limit is 拢1.5 million.
Knowledge intensive companies increased lifetime limit for EIS and VCTs
From 6th April 2018 knowledge-intensive companies (KICs) will be able to raise 拢20 million of investment in the lifetime of the company or group provided the company meets the definition of a KIC. The maximum amount an individual investor can invest each year in EIS companies is 拢2m per year, provided any investments over 拢1 million are in one or more KICs.
Procedural changes for Venture Capital schemes
Advance Assurance changes for EIS, SEIS, VCTs and SITR
From 6 December 2017, changes to the advance assurance service provided by HMRC: HMRC will not give an opinion on speculative investments, where the company is raising a tax-advantaged investment for the first time.