The Budget 2008 - Venture Capital, VCT and EIS

How much can you invest?

Investors claiming Enterprise Investment Scheme ("EIS") relief on investments can currently claim income tax relief on the first £400,000 of their EIS-qualifying investments in any tax year. That limit will increase to £500,000.

This change will need to be approved by the European Commission. However, if it is approved the increased limit will apply to all EIS-qualifying shares issued on or after 6 April 2008.

Further trades excluded

Certain trades do NOT qualify for relief under EIS and the Corporate Venturing Scheme ("CVS"), or for investment by Venture Capital Trusts. Three additional trading activities will be added to this non-qualifying list of trades, namely shipbuilding, steel production and coal production.

For EIS and CVS investors, the change will apply to all shares issued on or after 6 April 2008. For Venture Capital Trusts, the change will apply to all investments of monies raised on or after 6 April 2008.

How much can you invest? - budget notice