Chancellor Jeremy Hunt announced in his Autumn Statement the extension of the Venture Capital Trust (VCT) and Enterprise Investment Scheme (EIS) sunset clause to April 2035. The schemes’ previous sunset clause was due to expire in 2025.

The extension of the clause will allow subscribers under the schemes to continue claiming relief for at least 12 years. Moreover, the schemes can continue supporting equity investments into UK businesses, thereby aiding job creation and fueling the economy.

Shane Elliott, Partner at Beringea, commented: “We welcome the news that the Chancellor has extended the VCT scheme, which plays a vital role in supporting growing companies across the UK. Investors in VCTs will also welcome the certainty that comes with the extension of the scheme, which today collectively manages more than £6bn on behalf of thousands of shareholders nationwide.”

Beringea is the manager of the ProVen Venture Capital Trusts, which together manage more than £320m in assets and a portfolio spanning more than 50 entrepreneurial businesses.

Beringea also manages the ProVen Estate Planning Service, which is designed to help investors to mitigate inheritance tax (IHT) through business relief. As part of the Autumn Statement, Jeremy Hunt maintained current levels of IHT, which have seen HMRC levy record levels of taxation – inheritance tax receipts between April and October 2023 grew 12% year-on-year to £4.6bn.

The above is based on the Autumn Statement published on 22 November 2023 rather than legislation which will need to be enacted. It is not our intention to offer legal, tax or investment advice, and we always recommend that investors seek professional advice that can take account of their personal circumstances before making any investment or estate planning decisions.