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Venture capital schemes

From 6 April 2015 companies benefiting substantially from

subsidies for the generation of renewable energy will be

excluded from also benefiting from EISs, SEISs and VCTs, as

previously announced. There will be an exception for community

energy generation undertaken by qualifying organisations, which

will in future become eligible for the Social Investment Tax Relief.

Subject to state aid approval, further changes will be made to

venture capital schemes. These include a new qualifying criterion

in certain cases to limit relief to companies where the first

commercial sale took place within the previous 12 years. There

will also be a cap on the total investment a company can raise

under EISs and VCTs of £15 million, or £20 million for companies

that meet certain conditions demonstrating that they are

‘knowledge intensive’.

CAPITAL TAXES

Capital gains tax (CGT) annual exempt amount

The annual exempt amount for 2015/16 is £11,100.

Entrepreneurs’ relief

Disposals of shares in a company that is not a trading company in

its own right will not qualify for capital gains tax entrepreneurs’

relief (ER). This targets certain structures set up under the joint

venture rules and ensures that individuals can only benefit from

ER if they hold at least a 5% stake directly in a company carrying

on a trade. Individuals will also be prevented from claiming ER

on the disposal of personal assets used in a business carried on

by a company or a partnership, unless they are disposed of in

connection with a disposal of at least a 5% shareholding in the

company or a 5% share in partnership assets. The changes affect

disposals on and after 18 March 2015.

Gains that are eligible for ER, but are deferred into investments

that qualify for the enterprise investment scheme (EIS) or social

investment tax relief will remain eligible for ER when the gain

is realised. This change, which was announced in the Autumn

Statement 2014, benefits qualifying gains on disposals that would

be eligible for ER from 3 December 2014.

BUDget

18 March 2015

page 8

saver

Share your gains.

If you

are a higher or additional

rate taxpayer, you will

pay 28% on all capital

gains above your annual

exemption. If your spouse

or civil partner is a basic

rate taxpayer, they will

only pay 18% on gains

above their annual

exemption until their

basic rate tax band is

exhausted.

£