Treasury Committee urges extension to tax reliefs for small business investors

Spring Budget 2023

The Treasury Committee has called on Chancellor of the Exchequer Jeremy Hunt to “give certainty” to small business investors on whether tax reliefs designed to stimulate growth will be extended.

The enterprise investment scheme (EIS) and venture capital trusts (VCT) were set up to encourage investment in small businesses and, in turn, provide tax relief on income and capital gain, and both reliefs have a 'sunset end' set for 6 April 2025. The Treasury Committee said it received evidence showing the EIS and VCT are "critical to maintaining investment in early-stage companies", and the lack of certainty around their renewal could dampen investor confidence in their ability to invest in UK small businesses. Mini Budget 22: Extended VCT tax relief 'welcomed' The committee's ca...