The Treasury has put proposals to widen the investment universe for venture capital trusts on hold to protect the vehicles from losing their tax advantages.
Last November the government announced the £1m investment limit per company rule for VCTs had been lifted, allowing the schemes to invest up to £5m. However, the rule change rang alarm bells with a number of providers in the space as, in order to comply with European legislation, VCTs will lose tax benefits if they invest more than £2m into a company. The Association of Investment Companies (AIC) welcomed the postponement, arguing the timing of the new provisions did not give the venture capital sector time to adapt its investment processes and plan for the change. Ian Sayers (pict...
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