We are pleased to announce that the European Commission has released its response to the UK’s notification in respect of the prolongation of the Enterprise Investment Scheme (EIS) and the Venture Capital Trust scheme (VCT). The full response can be found here.
The European Commission confirms that it “has decided not to raise objections” to the prolongation of the EIS and VCT schemes “as it is compatible with the internal market pursuant to Article 107(3), point (c), of the Treaty on the Functioning of the European Union (‘TFEU’)”.
We understand that this decision was informed by research from a number of trade associations, including the VCT Association.
We are looking forward to hearing from HM Treasury for further information regarding when the Treasury Order will be laid in order to extend the EIS and VCT schemes until 5 April 2035.
The extension to the “sunset clause” is welcomed across the EIS and VCT industry as it recognises the crucial role these schemes play in ensuring that young companies can raise the investment they need to grow, and supporting thousands of job opportunities throughout the UK.
