The extension to the sunset clause on the Enterprise Investment Scheme (EIS) to 2035 has now been officially confirmed.
On the 3rd of September, 2024, HMRC Treasury has confirmed the extension of the Enterprise Investment Scheme relief and Venture Capital Trusts relief to shares issued before 6 April 2035.
The extension to the EIS was initially reported in November 2023, when the then government announced a 10-year extension to the EIS to April 2035. This passed through Parliament as part of the Finance Act 2024 in February. Whilst this was passed into law, there was clause stating that: “This section comes into force on such day as the Treasury may by regulations appoint.”
Yesterday was confirmed as the appointed day that the extension came into force:
Appointed Day
- 3rd September 2024 is appointed as the day on which section 11 (extension of enterprise investment scheme relief and venture capital trusts relief to shares issued before 6 April 2035) of the Finance Act 2024 comes into force.
We are delighted that the important work and innovation facilitated by the schemes will continue.
Our thanks to the Tax and Technical committee chaired by Philip Hare, the EISA Board and all EISA members who have worked so hard with us to confirm this extension.
It is essential to acknowledge the critical impact that the EIS has had on the UK’s startup ecosystem and broader economy.
The EIS has been a driving force behind providing £32billion of private investment to 56,000 startups over the past three decades and, as technology evolves and new challenges emerge, it will remain a crucial tool in fostering entrepreneurship and driving economic growth across the UK.
The new Labour government has been quick to emphasise the importance of ensuring the UK continues to be the best place to start a business and have highlighted their commitment to supporting start-ups to raise the capital they need to invest and grow our economy.
This announcement comes just two weeks before the 30th Anniversary of the EIS Celebration, held in London as a one-day conference on the 18th of September.
We at EISA are looking forward to celebrating the news alongside the EIS ecosystem at the event later this month.