Finance Bill 2020
The first draft of the Finance Bill 2020 was published today, on 19 March 2020. As anticipated, it contains amendments to the legislation dealing with EIS approved funds as well as setting out the framework for the new EIS approved fund for investment in “knowledge intensive” companies, as announced in the Autumn Budget 2017 and as part of the government’s response to the Patient Capital Review.
The Finance Act 2018 (Commencement) Regulations 2018
Further to The European Commission approving the Autumn Budget 2017 changes to the EIS and VCT schemes Commencement regulations for the Finance Act 2018 changes to EIS, SEIS, and VCTs have now been made. An announcement should be available on HMRC’s website shortly.
European Commission approval of changes to the EIS and VCT schemes
We have been informed that The European Commission has now approved the Autumn Budget 2017 changes to the EIS and VCT schemes without objection. The press release is here.
VCT (Exchange of Shares and Securities) Regulations update
On 30 January 2018, the amended VCT (Exchange of Shares and Securities) Regulations were laid before Parliament, and they come into force for transactions on or after 22 February 2018. Our note summarising the Regulations is here.
Tax-advantaged venture capital schemes – streamlining the advance assurance service – consultation response
On 1 December 2017, HMRC issued their response to the consultation that took place in relation to the advance assurance service for the tax-advantaged venture capital schemes (SEIS, EIS, VCT and SITR). The consultation was announced at Autumn Statement 2016 and closed on 31 January 2017. HMRC published a summary of responses on 20 March 2017 and have now provided their full response following a number of new measures announced in the Autumn Budget 2017.
VCT (Exchange of Shares and Securities) Regulations – consultation ending 2 January 2018
On 1 December, HMRC published draft amendments to the VCT (Exchange of Shares and Securities) Regulations. Power to amend the Exchange Regulations was given in the Finance Act enacted in November.
Second Finance Bill of 2017
A number of amendments to the venture capital tax relief regimes were originally announced in the 2016 Autumn Statement, and included in the draft 2017 Finance Bill. All of those provisions were dropped from the truncated Finance Act, which was passed prior to the General Election.
VCTs – amended regulations for annual returns of investments
Following our news article of 20 September 2016, HMRC have updated the Venture Capital Trust Regulations 1995 by way of Statutory Instrument. Our summary of the updated regulations is here and a link to the Statutory Instrument is here.
