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EIS changes get EU state aid approval
Practical Law UK Legal Update 2-509-0117 (Approx. 3 pages)
EIS changes get EU state aid approval
by PLC Tax
| Published on 07 Oct 2011 • United Kingdom |
HMRC confirmed on 6 October 2011 that the European Commission has given state aid approval to two changes to the Enterprise Investment Scheme rules. (Free access.)
On 6 October 2011, HMRC confirmed that the European Commission has given approval under the state aid rules to two changes to the Enterprise Investment Scheme (EIS) announced in the March 2011 Budget:
- Increase in the income tax relief rate from 20% to 30% in respect of investments in EIS qualifying companies made on or after 6 April 2011. This change was legislated by section 42 of the Finance Act 2011. A statutory instrument will bring this change into effect.
- Increase in the individual investment limit from £500,000 to £1 million in respect of investments made on or after 6 April 2012. The legislation introducing this change will be included in the Finance Bill 2012.
These approvals were trailed in the press last month, see Legal update, Tax news round-up to 27 September 2011: EIS: changes expected. For more on the 2011 Budget announcements, see Legal update, 2011 Budget: key business tax announcements: Changes to venture capital schemes. For background on income tax relief under the EIS, see Practice note, Enterprise Investment Scheme (EIS): Income tax relief.
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