The Office of Tax Simplification (OTS) issued its second report on simplifying practical, technical and administrative issues with the Capital Gains Tax (CGT) system. The scope of the report considers a range of key CGT issues and includes comments on the interaction with CGT reliefs under the SEIS and EIS and how the schemes function administratively.
The OTS report is positive in its overall assessment of SEIS and EIS, saying that there is evidence to suggest that tax incentives for venture capital investment generates a number of positive macroeconomic benefits. The report recommends that the government review the S/EIS rules with a view to ensuring that procedural or administrative issues do not prevent practical operation of the schemes. The OTS believes that its recommended changes could remove a range of anomalies that currently frustrate S/EIS investors and if implemented could facilitate more financial support for start-up and early-stage companies.
The report can be accessed in full here.
