Sir Nigel Rudd, chairman of Longbow Capital, the specialist VCT and EIS healthcare investor, welcomes today’s Budget and comments on its potential for supporting the private sector.
Longbow is a founding partner of the Boots Centre for Innovation, a technology hub based in Swansea, Wales, which works closely with early stage companies or inventors to develop pioneering products for the shelves of Boots stores.
Sir Nigel Rudd says: “I am pleased by the announcements made in today’s Budget, the Chancellor spoke about his desire to make Britain the home of innovation and I fully support his wish to do so. It is good to see the Government continuing to support innovative companies both through enterprise investment schemes (EIS) and venture capital trusts (VCT), the capital from which is invested in companies at the forefront of technological advancements.”
The Budget saw a change to the number of businesses that will be able to benefit from EIS and VCT. Under existing rules, companies with no more than 50 employees and who met a £7 million pre-money gross asset test could qualify for VCT and EIS relief. But from April 2012, this will now increase to 250 employees, with gross assets to £15m. In addition, companies will also be to take up to £10m investment a year.
Sir Nigel comments: “I have been vocal about the fact that UK growth will not happen without supporting innovation and the British companies behind it. I am encouraged that the Government appears to be listening and taking advice from the business community as was indicated with the change to the number of businesses that will be able to benefit from investment injected by EISs and VCTs. Capital from these investment vehicles make a real difference to businesses that receive it, the employees and prospects for continuing growth.”
He continues: “Bringing the income tax relief on EIS in line with the relief enjoyed by VCTs, from 20 percent to 30 per cent, will help to encourage UK savers to be part of this vision for private sector growth.”
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Editors Notes
For further information please contact:
Roland Cross / Sarah Evans-Toyne/ Melanie Bradley – Broadgate Mainland 020 7726 6111 (longbow@broadgatemainland.com).
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