Responding to the Government’s Autumn Statement, Will Fraser-Allen, Chair of the Venture Capital Trust Association said:
We are delighted the Government has confirmed that the current sunset clause which applies to the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCTs) will be removed. The Chancellor’s commitment today is the right decision for the UK economy.
The VCTA has been demonstrating the positive impact made by our members throughout the UK, through their investment in the next generation of early-stage businesses. However, there has been much uncertainty caused by the Sunset Clause which has been detrimental to the VCT scheme. By removing this uncertainty, we can now support the cross-party consensus that has now emerged, which recognises that early-stage companies are the engine of growth across the UK; that small firms generate employment opportunities and drive innovation.
This is positive news for the VCT sector, the entrepreneurial businesses that VCTs support and all those that have invested in VCTs.