IoD calls for tax break for venture capital to drive investment to British businesses (Angel News)
The Director General of the Institute of Directors today called for investments in venture capital trusts to be given tax breaks to push funding towards British businesses.
In a speech to shareholders of Albion Ventures, Simon Walker urged the Government to extend to venture capital trusts the exemption from inheritance tax that investments in Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) schemes currently enjoy.
Walker argued that venture capital supported the “vibrant small-scale enterprises on which our economic future depends”. He said investors were “relatively ordinary people” thinking about their future and “providing investments that also serve the community's interests”.
The cost to the treasury would be “minimal,” Walker suggested, and could even be positive, as money is directed away from investment designed to escape inheritance tax and towards growing businesses.
Excerpts from speech by Simon Walker to shareholders of Albion Ventures, RAC club 12.11.14
As a venture capital trust enthusiast, I’d like to say how important VCTs are. They matter philosophically as well as economically.
They are about creating vibrant, usually small-scale enterprises, of the sort on which our economic future depends.
I was reading over the weekend, the views of a Harvard professor who claims that big business has not created any net jobs in the last 40 years. It's actually shrunk its overall employment level.
What's filled the gap has been the creation and growth of exactly the kinds of businesses you'll be hearing about today.
VCT’s are democratic: most investors are relatively small-scale. It is a vehicle for relatively ordinary people to put their long-term savings into growth and income providing investments that also serve the community's interests.
See the full article here on the Angel News website.