An extension of the VCT scheme has been given the green light by the European Commission.
In an update this week, the EU’s executive body confirmed it would not raise any objections to the venture capital trust and enterprise investment scheme running for another 10 years.
The schemes were due to expire in April 2025 but will now be safe for the next decade.
Chris Lewis, chair of the VCT Association, said: “This a very good day for the UK’s VCT community.”
He said the association will be speaking to the government to confirm the full details of the extension.
“The VCTA has continuously sought to demonstrate the positive impact made by our members throughout the UK, through their investment in the next generation of early-stage businesses,” said Lewis.
“We are delighted that the response from the European Commission was informed by not only the VCTA’s own research, but also by a body of research from other associations across the industry.”
Stuart Veale, managing partner of Beringea, the manager of the ProVen VCTs, welcomed the “step forward” for the industry.
He said: “For almost three decades, VCTs have demonstrated their capacity to create jobs, fuel innovation, and drive shareholder returns.
“Securing these benefits for another decade has, therefore, been an industry priority for several years, and we look forward to working with the Treasury to finalise the extension as swiftly as possible.”
Richard Stone, chief executive of the Association of Investment Companies, said the “excellent news” provided certainty that VCTs can continue to support UK companies.
He added: “VCTs have many advantages for investors, including good long-term performance and their investee companies create jobs and social benefits for local communities.”
tara.o'connor@ft.com
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