David Brookes examines the practical effects of the forthcoming changes to VCT legislation
Finance Bill (No 2) 2010 introduced to Parliament in Autumn 2010 contains important changes to the regime surrounding Venture Capital Trusts (VCTs). These have been trailed for some months and are the latest changes to the VCT legislation forced by EU State Aid rules. The following changes come into effect from Royal Assent.
UK Permanent Establishment requirement
The removal of the requirement for VCT investee companies to trade mainly in the UK and the substitution of a straightforward Permanent Establishment rule is a major opportunity for VCTs who will be able to cast their net wider than before in seeking value for their investors and is an opportunity for UK companies seeking to use VCT finance for overseas expansion. We are already seeing ‘overseas’ companies sounding out VCTs for investment. The detrimental effect...
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:
David Brookes examines the practical effects of the forthcoming changes to VCT legislation
Finance Bill (No 2) 2010 introduced to Parliament in Autumn 2010 contains important changes to the regime surrounding Venture Capital Trusts (VCTs). These have been trailed for some months and are the latest changes to the VCT legislation forced by EU State Aid rules. The following changes come into effect from Royal Assent.
UK Permanent Establishment requirement
The removal of the requirement for VCT investee companies to trade mainly in the UK and the substitution of a straightforward Permanent Establishment rule is a major opportunity for VCTs who will be able to cast their net wider than before in seeking value for their investors and is an opportunity for UK companies seeking to use VCT finance for overseas expansion. We are already seeing ‘overseas’ companies sounding out VCTs for investment. The detrimental effect...
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:
