Budget 2011: VCT and EIS asset limit rises to £15m

VCTs and EIS will be able to invest in businesses with gross assets of up to £15m, from the current level of £7m, according to new rules announced in today's Budget.

The businesses in which they can invest may also employ up to 200 people, rather than the current level of 50. Chancellor Osborne also announced EIS income tax relief would rise to 30% from 20% in April 2012, while the annual EIS investment limit for individuals will be raised to £1m. The government will look at ways of providing further support for seed investment but feed-in tariffs will be excluded from the activities list. Osborne has also raised the amount the schemes can invest in one company by 400% in a bid to boost small businesses. The changes will be a relief to the i...