Business Relief As Start-Up Investment Schemes Extended
Growth through financial support ...
Posted by Roger Eddowes on 21/10/2024 @ 8:00AM
The government has announced that certain investment schemes have been extended until April 2035. This significant move focuses on the growth of start-ups, providing them with the necessary foundations to thrive in a competitive environment ...
There is widespread relief and optimism surrounding the extended investment schemes!
At the heart of this development are the Enterprise Investment Scheme (EIS) and the Venture Capital Trust (VCT). Initially slated to end on the 6th of April 2025, these schemes will now enjoy a decade-long extension, allowing entrepreneurs to access essential financial support for an extended period.
"This initiative aims to fuel innovation, stimulate job creation, and ultimately contribute to the broader economic growth of the country!"
The investment scheme extension serves as a vital lifeline for countless start-ups, particularly those in their formative stages, which often face significant financial hurdles. The EIS, introduced in 1994, provides investors with attractive tax relief incentives, including up to 30% upfront income tax relief and an exemption from capital gains tax. Similarly, the VCT, which has been operational since 1995, offers individuals the option to invest in early-stage, high-potential companies while benefiting from tax-free dividends.
These tax incentives are particularly important given the inherent risks associated with investing in early-stage businesses. Investment in this sector can often be daunting; therefore, both schemes are designed to offer loss relief to investors, mitigating some of these risks. As a result, the announcement has been met with widespread approval from industry leaders who recognise the potential impact of these changes.
Start-ups and entrepreneurs play a critical role in driving job creation and economic growth. The extension of these schemes not only injects confidence into the sector, but also encourages investors to allocate resources to promising ventures, ensuring that the UK remains a competitive player in the global market.
"There is widespread relief and optimism surrounding the extended investment schemes!"
I feel that the UK government's decision to extend investment schemes until 2035 represents a promising development for start-ups navigating the intricate landscape of business growth.
The future for numerous budding enterprises appears considerably brighter.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the extension to the EIS and VCT investment schemes, it could be a great idea to call me on 01908 774320 and let's see how I can help.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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