HM Treasury has supplied summary of the implications of the Autumns Statement for the tax-advantaged venture capital schemes.
A consultation will be carried out into options to streamline and prioritise the advance assurance service.
Finance Bill will clarify the rules for share conversion rights for shares issued on or after 5 December.
Finance Bill will provide for additional flexibility for follow-on investments made by Venture Capital Trusts (VCTs) in companies with certain group structures, to align with EIS provisions, for investments made on or after 6 April 2017.
Finance Bill will introduce a power to enable VCT regulations to be made in relation to certain share for share exchanges to provide greater certainty to VCTs, to take effect from Royal Assent.
The government has also announced it will not take forward replacement capital (using EIS/VCT money to buy second-hand shares) for the time being, but will review the case over the longer term.
Additionally, the government has announced the Finance Bill will make changes to the Social investment Tax Relief (SITR): the amount of investment social enterprises aged up to seven years old can raise through SITR will increase to £1.5 million. Certain activities, including asset leasing and onlending, will be excluded to ensure the scheme is well targeted. Investment in social care will be excluded initially, however the government intends to introduce an accreditation system to allow investment in social care to qualify for SITR in the future. Draft clauses will be published in the new year.
Tax Information and Impact Notes, giving more details of all the proposed changes, will be published on 5 December. Draft clauses for all the measures, other than the SITR clauses, will also be published on 5 December as should the consultation document. The SITR draft clauses will be published in the new year.
Autumn Statement 2016: tax updates and technical changes can be found HERE.
