Statement 2011: VCT £1m limit to be removed

The £1m investment limit on venture capital trusts (VCTs) will be lifted, according to the new autumn statement from the chancellor.

In the statement presented to parliament today, George Osborne announced a number of changes to the regimes surrounding the enterprise investment scheme (EIS) and VCTs.

“The government will remove the £1m investment limit per company for VCTs to reduce the administrative burdens of the scheme,” the document explains.

Changes to the EIS include relaxation of the connected person rules and the definition of shares that qualify for income tax relief.

EIS funds will also be barred from investing in feed-in tariff businesses and will face a test to ensure they were not set up solely for the purchase of accessing tax relief.

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