Simon Groom gives an overview of the corporate venturing scheme
Overview
The Corporate Venturing Scheme (CVS) gives tax relief to companies that invest in small unquoted trading companies prior to 1 April 2010 provided certain conditions are satisfied (FA 200 Sch 15).
The intention of this relief is to encourage larger companies to invest in smaller companies — the tax relief is an incentive for them to do so. Tax relief is given as a tax reducer — ie the relief reduces the corporation tax liability of the investing company.
In addition special rules apply in relation to capital gains/losses realised on the sale of CVS shares.
Conditions for CVS relief
Certain conditions must be satisfied throughout the qualification period of the shares both by the investing company (ie the company acquiring the CVS shares) and the issuing company (ie the company issuing the...
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Simon Groom gives an overview of the corporate venturing scheme
Overview
The Corporate Venturing Scheme (CVS) gives tax relief to companies that invest in small unquoted trading companies prior to 1 April 2010 provided certain conditions are satisfied (FA 200 Sch 15).
The intention of this relief is to encourage larger companies to invest in smaller companies — the tax relief is an incentive for them to do so. Tax relief is given as a tax reducer — ie the relief reduces the corporation tax liability of the investing company.
In addition special rules apply in relation to capital gains/losses realised on the sale of CVS shares.
Conditions for CVS relief
Certain conditions must be satisfied throughout the qualification period of the shares both by the investing company (ie the company acquiring the CVS shares) and the issuing company (ie the company issuing the...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
