In recognition that the existing limits in some of these schemes restrict their availability to companies in their critical scale-up phase, the Government announced a package of tax changes to support scaling companies to attract investment and talent.
There is also an objective to take further steps to ensure tax support is ‘founder friendly’. A call for evidence has therefore been published seeking input from across the scale-up and investor community on the impact of existing schemes and options to provide further support to ensure the UK entrepreneurial ecosystem thrives.
The VCT and EIS company investment limits will increase to £10 million (£20 million for Knowledge Intensive Companies (KICs)) and the lifetime company investment limit will increase to £24 million (£40 million for KICs). From April 2026, the gross assets test will increase to £30 million before share issue, and £35 million after. However, the rate of VCT income tax relief will decrease from 30 percent to 20 percent.
No changes were announced to the Seed Enterprise Investment Scheme.
LOADING...