The Government have announced they will make changes to the Enterprise Investment Scheme (EIS), the Seed Enterprise Investment Scheme (SEIS) and Venture Capital Trusts (VCTs) within Finance Bill 2017 to:
- Clarify the EIS and SEIS rules for share conversion rights, in relation to shares issued on or after 5 December 2016;
- Provide additional flexibility for follow-on investments made by VCTs in companies with certain group structures to align with EIS provisions, for investments made on or after 6 April 2017;
- 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 consult on options to streamline and prioritise the advance assurance service.
It was further announced that the Government will not be introducing flexibility for replacement capital within the tax-advantaged venture capital schemes at this time and will review this over the longer term.