The Venture Capital Trust Association (VCTA) welcomes today’s Treasury Committee report on venture capital. The report calls for urgent action across the sector, to guarantee continued investment in small businesses.
Among the key recommendations of the report:
Continued support for venture capital tax reliefs
A clear HM Treasury plan for the extension of sunset clauses on venture capital reliefs beyond April 2025
Provision of diversity statistics
Extending the seven and ten year company age limits for support through the EIS and VCT schemes
A Government Consultation on higher funding limits on the EIS and VCT schemes
Will Fraser-Allen, Chair of the VCTA, added: “We welcome the Treasury Committee’s Report and their recommendations; these clearly address the concerns of the VCT community and represent a positive future vision for continuing growth in the sector, to ensure continued investment in small high growth innovative businesses across the UK.
“We hope that the Treasury will take on board the recommendations, as the report notes, because as the April 2025 Sunset Clause deadline draws closer, the absence of a clear plan from the Treasury will harm investment, which relies on certainty.
“Likewise, the VCTA is keen to work with HM Treasury, to consult on expanded funding limits applicable to the EIS and VCT schemes, with the objective of better supporting scale-up businesses.
“The VCTA will continue to engage in positive dialogue with the Treasury to ensure those entrepreneurs who rely on equity capital to fuel their businesses’ growth continue to receive the funding they need, as well as delivering value for all stakeholders. ”