The EIS and the VCT scheme offer tax reliefs to individuals investing in small and medium-sized companies.   

A number of conditions must be met for a claim for tax relief to be valid. One of these conditions is that the shares in the company (for EIS relief) or in the VCT are issued before a date specified in the legislation (often referred to as the ‘sunset date’). That date has now been extended from 6 April 2025 to 6 April 2035.  

ICAEW had warned in its response to the April 2022 Treasury Committee call for evidence, that allowing the schemes to lapse would lead to a significant gap in early-stage equity finance. This change is welcomed as it will provide certainty to companies and investors.  

The extension to 6 April 2035 is given effect by s.11, Finance Act 2024 which has now been brought into force by The Finance Act 2024, Section 11 (Extension of Enterprise Investment Scheme Relief and Venture Capital Trusts Relief) (Appointed Day) Regulations 2024, SI 2024/897.  

Further information 

• The government’s press release Boost for UK growth as start-up investment schemes extended.
• HMRC’s collection of documents on venture capital schemes. This includes guidance for companies on using venture capital schemes to raise investment, and for individuals on claiming tax relief.