Introduction Background Note
17.The three venture capital schemes are designed to assist smaller higher risk trading companies to raise finance by offering a range of tax reliefs to investors.
18.A consultation on the EIS was held in 2008 (The Enterprise Investment Scheme: A Consultation Document). The Government’s response was published in November 2008. The proposed changes to the EIS in the Finance Act were set out in that response document.
19.The changes to the CVS and VCTs parallel those made to EIS. The Government seeks to keep conditions aligned across the three Schemes where appropriate.
20.The schemes were approved as State Aid by the European Commission on 29 April 2009.