Budget 2016: Treasury clarifies EIS and VCT legislation

To be introduced in Finance Bill 2016

Steps have been taken to ensure the legislation regarding changes made to VCT and EIS products announced in last year's Summer Budget is clear and works as intended.

The need to clarify the legislation emerged after investors were left confused about the shift to direct new VCT money towards earlier phase investments. In today's Budget, the Treasury said legislation will be introduced in the Finance Bill 2016 to ensure the five-year period for determining the average turnover amount ends immediately before the beginning of an investee company's last accounts filing period. For knowledge-intensive companies, it will ensure the relevant three preceding years for the operating costs conditions also ends before the beginning of the filing period. A...