EU relaxes VCT scheme requirements

Under the enhanced scheme, the size of companies eligible for funds increased from £7m to £15m in assets held. Maximum thresholds on the size of the employee base have also been loosened. Finally, SMEs can now receive up to £5m in VCT funds, as opposed to £2m previously.

"The new investment freedoms VCTs will gain will create exciting opportunities for both VCTs and the hundreds of small businesses they invest in. They will reinforce VCTs' ability to finance SMEs struggling to secure development capital and support the government's growth agenda," said AIC director general Ian Sayers in a statement.

Will Fraser-Allen, deputy managing partner of Albion Ventures, added: "Venture capital investment in small businesses from VCTs provides a much needed alternative to traditional sources of financing - which have all but dried up. VCT investing can therefore stimulate growth, employment and be an important catalyst for getting the UK economy back on track."

Earlier this year, unquote" reported prime minister David Cameron's call for the EU to increase measures to support European SMEs.

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• Topics
• Regulation
• UK / Ireland
• EU Commission
• United Kingdom