Back to basics: Corporate venturing scheme

Speed Read: The Corporate Venturing Scheme (CVS) gives tax relief to companies investing in small unquoted trading companies prior to 1 April 2010 provided certain conditions are satisfied. The scheme provides corporation tax relief on the investment made. Relief is also available for capital gains/losses realised on a subsequent disposal (where the substantial shareholding exemption does not apply). Relief is withdrawn if the CVS shares are disposed of within three years of issue (or if later, three years of commencement of trade) or the investing company receives value from the issuing company. The issuing company must provide the investing company with a compliance certificate, to enable it to claim the tax relief.