The government has announced that they are to extend the existing sunset clauses for EIS and VCT to April 2035.
This therefore removes all uncertainty for investors and entrepreneurs as the VCT and EIS scheme has supported billions of pounds worth of investments into the UK.
Nicholas Hyett, Investment Manager at Wealth Club said, “The announcement that the government is extending the VCT and EIS sunset clauses out to 2035 is good news for two schemes that have supported billions of pounds worth of investment into UK start-ups.
“It removes uncertainty that has been lingering over the sector for some time, potentially putting off new entrants and new investors, and secures a crucial source of funding for the UK’s blossoming start-up scene.
It is a shame that the sunset clause hasn’t been abolished altogether – which would have avoided a repeat of the current uncertainty in a decade’s time – but with the Labour Party also voicing support or the schemes the extension is welcome nonetheless.”