The Autumn Statement

Yesterday the chancellor extended the VCT and EIS sunset clause from April 2025 to April 2035. It was a change that was cheered by both sides of the house, with Labour voicing support for the extension. Given that the UK start up market grows at around 25% per annum it is easy to see why they have done this.

See our recent article for more on this: The perpetual growth of the UK start up market.

This is welcome news for the UKs thriving startup economy. The extension gives early stage companies more certainty in an uncertain environment, it will give startups the support and capital they need to grow and thrive. Since the inception of EIS and VCTs in the 1990s they have grown in popularity and are forecasted to continue to grow. With generous tax advantages and opportunities for high growth it is easy to see why they have become a mainstay of people's financial planning.

Given that tax thresholds are frozen until 2028, individuals are increasingly accessing the venture capital space to ease their tax burden and access exciting, high growth, early stage companies. Last year over £1bn was invested into Venture Capital, with this figure set to rise.

With the future of the UK Venture Capital space now more certain and given the support it needs to thrive and grow we believe that now is the time to invest in the UKs best and brightest businesses.

Please call us if you have clients who have high tax burdens or are looking to access early stage, high growth companies.

To find out more about how the Access EIS Fund can work for you, use the link below to schedule a call with our expert, Ben Charrington.

Schedule a call with us.

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