This is fantastic news for the tax efficient industry and specifically the EIS and VCT schemes.
Uncertainty is never a positive factor when making investment decisions and, whilst we can’t predict where markets will move to or how individual companies will perform, removing other points of uncertainty, such as the Sunset Clause, is crucial to a healthy investment landscape.
This extension of the schemes to April 2035 now removes this uncertainty and will allow advisers, their investors and product providers the clarity needed on the longevity of the schemes. Moreover the timing of the news, coming well in advance of the tax year end, should encourage a healthy appetite for these products.
We would like to reiterate our thanks to the EIS Association, the Association of Investment Companies (The AIC), VCT Association and the wider industry for their tireless work in pursuit of this outcome. It is comforting to know that these schemes will continue to unlock the much needed private capital that supports the innovative businesses that drive growth in the UK economy.
Articles that have caught our eye about the Sunset Clause:
