ATT comments on Finance (No.2) Bill: Clause 14 (EIS, SEIS and VCT reliefs: risk to capital)

Released 09 January 2018

The Association of Accounting Technicians (ATT) has published written evidence submitted on Finance (No.2) Bill: Clause 14 (EIS, SEIS and VCT reliefs: risk to capital).

The clause introduces a new overarching risk-to-capital condition (the condition) to prevent investment in companies whose activities are mostly geared towards the preservation of the capital invested rather than the long -term growth and development of the company. The condition will apply to the Enterprise Investment Scheme (EIS), Seed Enterprise Investment Scheme (SEIS) and the Venture Capital Trust Scheme (VCT). The ATT is concerned that the imprecise wording and subjective nature of the condition will make it difficult for companies to demonstrate it is met and the commencement provisions for the condition are also unclear. The ATT considers that Clause 14 should be amended to clarify how the condition will apply in practice and to provide certainty as to its commencement date.

View the submission at Finance (No.2) Bill: Clause 14 (EIS, SEIS and VCT reliefs: risk to capital).

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