F(No.2)B 2010–11: venture capital schemes

The UK’s VCT and EIS schemes are being changed to comply with conditions attached to the EU State Aid approval which was granted to the schemes in 2009. VCTs will no longer need to be listed in the UK; and VCT and EIS funds will no longer need to be used in a UK trade. However, a potentially burdensome financial health requirement is being introduced, and the proportion of equity which VCTs must invest in companies is substantially increasing, albeit with a slight broadening of the definition of eligible shares.