Budget: Clampdown on VCTs and EISs just targeting tax relief

Chancellor George Osborne has announced a clampdown on venture capital trusts (VCTs) and enterprise investment schemes (EIS') purely set up to access tax reliefs.

In today's Budget, Osborne said the government will roll out a new disqualifying purpose test to exclude companies set up for the purpose of accessing relief. Osborne said the purpose of VCTs and EIS is to target genuine risk capital investments, as opposed to taking advantage of the generous tax breaks on offer. The consultation will come as a blow to some feed-in-tariff VCT and EIS providers. He said: "For both EIS and VCTs the government will also introduce a new disqualifying purpose test to exclude companies set up for the purpose of accessing relief, exclude acquisition of sh...