Withdrawing investor tax breaks could choke off start-up investment, VC bodies warn MPs
- On June 29, 2022
- By GrowthInvest Marketing
Venture capital bodies have today warned MPs that the withdrawal of tax incentives for investors could choke off the flow of capital into UK start-ups and restrict the growth of the country’s tech sector.
Retail investors have been tempted into investing in early stage startups by schemes like the Enterprise Investment Scheme (EIS) and Venture capital trust (VCT) regime, which allow them to claim back hefty tax relief on their investments.
But a ‘sunset clause’ for EIS and VCT has been introduced by the Treasury, shutting out relief to subscriptions made on or after 6 April 2025.
Speaking at a Treasury select committee hearing today, chiefs of UK venture capital bodies sounded the alarm over the closure of the schemes, which they said would deter investors.
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