Govt refuses to confirm extension of VCT sunset clause
- On June 22, 2023
- By GrowthInvest Marketing
The economic secretary has refused to commit to extending the sunset clause for venture capital trusts despite being asked twice by MPs.
In an evidence session yesterday (June 15), Andrew Griffith was asked twice whether the government would commit to extending the sunset clause for VCTs, enterprise investment schemes and seed enterprise investment schemes.
Harriett Baldwin, chairperson of the committee, said there is uncertainty in the sector about the extension of the sunset clause, which is due to run out in 2025, and the sooner that can be clarified the better.
Griffith responded that chancellor Jeremy Hunt has given a “very clear” statement that the schemes will run in 2025, but declined to commit to an extension.
“It is the nature of parliament that we do not bind our successors any more than we absolutely need to to give people that…certainty,” he said, adding that people can look at the “longevity” of the schemes and see that there is a “real commitment” in government for the tax reliefs.
“I am happy to reaffirm today my belief that these schemes work well for the British economy, they work well for taxpayer fairness,” he said.
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