Budget 2010: Treasury introduces VCT changes

The Government is to introduce the final changes to VCTs which were agreed with the European Union.

In order for VCT investment not to count as state aid, the previous Government had to agree changes to the industry including where shares can be listed. Today's Emergency Budget sets out the four changes which will be included in a Finance Bill to be introduced as soon as possible after Parliament's summer recess. The four changes are: VCTs only VCTs will be able to list their shares in any EU/EEA country. At the moment they can only be listed in the UK. VCT will have to own at least 70% of their investments in companies in eligible shares, up from the current 30%. However,...