EU Approves UK’s Extension of Investment Schemes

The European Commission has given the green light for the UK to extend its Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) until 2035. This approval marks a major milestone in the process, which started with the UK government's proposal in November 2023. 

The UK Treasury had been negotiating with the EU to secure this extension, and last month, they announced that the talks were nearing completion. With the Commission's approval now secured, final confirmation from the Treasury is expected in the coming weeks. 

These schemes have played a vital role in attracting investment to smaller, high-risk companies, providing them with the necessary capital to grow and innovate. According to a government report, many investors would have shied away from these riskier ventures without the tax incentives offered by the EIS and VCTs. The continuation of these schemes is seen as essential for maintaining momentum in the UK’s startup and innovation sectors, ensuring that emerging companies continue to receive the support they need to thrive. 

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