Budget 2010: Treasury considers relaxing VCT rules

The Treasury is considering relaxing the rules which govern VCT investment.

In the Budget Report, the Treasury says it will work with the industry to look at changes including: increasing the employee limit to either 100 or 250; the gross assets limit to £15m before the investment and £16m after, as well as hiking the annual investment limit to £5m for qualifying companies. Under current rules, investee companies can have a maximum of 50 employees and can only receive £2m from VCTs in any year. The report also says following consultation, the European small enterprise definition will not be introduced next month. AIC director general Ian Sayers says: "Remo...