The Government’s response to the Treasury Select Committee Inquiry into VC has now been published. They have restated their commitment to the EIS and to extending the sunset clause, confirming that:
“HM Treasury agrees with the Committee that the sunset clauses for the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) should be extended. The Chancellor has already stated his firm intention to extend the sunset clauses and will provide further details on the schemes beyond 2025 at a future fiscal event.”
It’s reassuring to see the Government restating their firm intention to extend the sunset clause on the EIS. This is absolutely critical for entrepreneurs across the whole of the UK and certainty around this could give a real boost to start-ups looking to raise investment now and in the near future.
The Government also explained that, whilst they agree with the importance of a diverse VC market, they do not agree that “that eligibility for the venture capital schemes should be contingent on the provision of this data.” The Treasury went onto to say that “transparency and consistency of diversity data could be improved. The Treasury will explore ways in which this can be achieved.”
The full report can be read here.