Autumn Statement 2016: Tax-advantaged venture capital schemes

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.