Sat, Oct 1, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

EIS and VCT schemes sabotaged by EC negotiations accountancy firm claims

Thursday, March 22, 2012

Beverly Chandler, Opalesque London: Chilton Taylor, head of capital markets at accountancy firm Baker Tilly believes that any company which has received assurance that it qualifies for investment under the EIS or by VCTs which was given prior to 5 April 2012 should check that assurance still applies if investment is made after this date.

"As mentioned in the last budget the EIS annual investment limit will be increased from 6 April 2011 to £1 million ($1,583,927) per individual. The size limits on a qualifying company are raised to those with fewer than 250 employees and gross assets £15 million ($23,758,913) pre-investment with £16 million ($25,342,841) post investment, which has been subject to EU state-aid approval" Taylor says.

"But, in order to make the above palatable to the EU because this legislation falls within EIS State Aid provisions, the annual investment limit for a qualifying company will now be £5 million ($7,919,637) not the £10 million ($15,839,275) as said by the chancellor this time last year. More worryingly, we are told by HMRC that this £5 million ($7,919,637) annual limit additionally applies to funds deemed to have been raised by VCTs prior to 5 April 2007 which were previously 'protected’ from any annual investment limit and a beneficial source of funds to many growing companies". Further, the annual investment limit is also to be restricted by any other state aid risk capital obtained by a company such as stakes in the company by regional......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: BlackRock taps Artivest for alternative investment platform partnership[more]

    Bailey McCann, Opalesque New York: BlackRock will be working with New York-based Artivest to provide a platform for broader distribution of BlackRock alternatives funds. Artivest is a technology-driven alternative investment platform that also offers brokerage services. BlackRock has approximatel

  2. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  3. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  4. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity

  5. Asia - Quant hedge funds are China's hot new export, Europe banks return to Korean brokerage market; target debt, alternative products[more]

    Quant hedge funds are China's hot new export From Bloomberg.com: Add China’s quant shops to the list of hedge funds branching out across Asian markets. Quantitative money managers from the world’s second-largest economy are opening offshore funds at a never-before-seen pace, according to