The Enterprise Investment Scheme Association (EISA) is disappointed this year's Budget does not incl...
The Enterprise Investment Scheme Association (EISA) is disappointed this year's Budget does not include an increase in upfront tax incentives for the vehicles.
The Budget has introduced a number of minor improvements to EIS and one amendment to venture capitalist trusts (VCTs) however the EISA says it did not go far enough.
The changes to EIS include a relaxation of the time limits on the employment of monies raised through the scheme and an extension of the period of carry-back on income tax relief.
According to the new legislation, all money raised for EIS will now need to be employed by the company within two years of the issue of shares or, if later, within two years of the commencement of a qualifying activity.
Previously 80% of the money raised was required to be utilised within 12 months with the balance employed within a further 12 months.
The extension to the period of carry-back relief will mean investors are now able to treat qualifying shares as having been issued in the previous tax year and therefore claim income tax relief on them.
Meanwhile VCTs will see only a relaxation of the time limit concerning the employment of funds, in line with EIS.
