Budget 2011: UK enterprise to benefit

23rd March 2011

Income tax relief for Enterprise Investment Schemes will increase from 20 to 30 per cent from April this year while the investment regime for both EISs and VCTs will be liberalised from next year.

However wind and solar companies which benefit from ‘feed-in' tariffs will be excluded from the EIS and VCT regime from next year. Such schemes were regarded as benefiting from a double tax break – the tariff and the tax shelter.

The Chancellor believes the changes will target the tax benefits towards genuine risk capital investments.

From April next year, the annual EIS investment limit for individuals will rise to £1m.

Both types of investment will be able to invest in companies with 250 employees and gross assets of £15m instead of the current £7m cap.

The annual investment limit per company for both will increase to £10m for both vehicles.

24 thoughts on “Budget 2011: UK enterprise to benefit”

  1. Anonymous says:

    Yes early on I saw that the guy was on the European Equity desk.  That was a line spun by UBS was it?

    Just to highlight the story I brought to your attention Shaun, so that everyone else on here can read it – if they haven’t already:

    http://www.bloomberg.com/news/2011-09-15/ubs-trader-gets-no-miracle-as-delta-one-loss-leads-to-arrest.html

  2. Anonymous says:

    T-Connection “Do What Ya Wanna Do” 
    The Who “Won’t Get Fooled Again”
    Led Zeppelin “What Is and What Should Never Be”, “Dazed and Confused”, “How Many More Times”
    Alan Hull “United States of Mind”

    I will let you decide which band will need which song….

    1. Jason Aris says:

      “Road to Nowhere” Talking Heads
      “This is the Road to Hell” Chris Rea

      1. Rob says:

        Greece is the word
        Greece is the word, is the word that you heard
        It’s got groove it’s got meaning
        Greece is the time, is the place is the motion
        Greece is the way we are feeling
        This is the life of illusion
        Wrapped up in trouble laced with confusion
        What we doing here?

    2. Jason Aris says:

      “Land of Confusion” Genesis

  3. Anonymous says:

    I am no expert on Greece but I wonder if Venizelos is making Samaras’ case for an election by highlighting distrust in international circles of Greece’s intentions. Samaras seems to make the same point as the troika that the Greece tax base has been exhausted…what worries me is the UK govt policy here which seems to encourage an institutionalised fiscal union as some sort of pragmatic endgame. How dangerous is this policy? Anyone watching the EU parliamentary debate would conclude that Barroso’s plea to federalist loyalty finds no support in important national electorates within the eurozone. Osborne therefore looks entirely disingenuous and riding the wrong dynamic and we would be better advised to encourage policies of damage limitation from a default and speaking out for the European free market ideal.Compare and contrast the response to the Arab spring and constant references to ‘ the people’…

    1. Anonymous says:

      Hi Shire

      There seems to be some talk tonight of a referendum in Greece on the Euro so perhaps the sands are shifting as you say. As to UK policy is it not as Sir Humphrey Appleby described?

      You are right to contrast the Arab Spring with the way protest movements have been treated in the EU. There is much to consider there I think.

      1. Sovjohn says:

        Regarding domestic matters in Greece, I suppose the next few days will be crucial. It is widely reported that the Troika does not agree with the tax imposing measures of the government, and wishes them to slash spending instead. The measures debated are a radical departure from the government’s “do not touch the public sector” mantra.

        Depending on the breadth of the measures proposed, we may see a referendum or general elections – PASOK wants to avoid general elections since they’d spell its doom, but then again, if the measures become “too much to carry”, I suspect they’ll eventually cave in.

        We should find out later tonight.

        PS: The State has made contingency plans in the event that it has no more money to spend after mid October, among which would be, an advance payment on pensions, a delay in pensions awarded to those below 55 years of age (note: this is not a majority of pensioners, but quite a few people serving in the police, armed forces, et al, are entitled to a pension after 30-35 years of service, and most of them begin at 18, which would make them pensioners at 48-53 I believe), et al.

        I’ll get back to you to comment when we find out the definite new “measures mix”.

  4. BKester says:

    “………Let me give you something odd about events (about UBS). If we believe what we have been told equity investments went wrong. But late last week equity markets rallied so the loss should have reduced. And yet we are told it got larger!”   But couldn’t the rogue trader have taken a large short position that went horribly wrong?

    1. Anonymous says:

      Hi BKester

      It is possible but I think that if you look at the ways markets have gone he was likely to have been long equity markets as if he had been short the initial falls from the highs would have netted a decent profit not a loss and if this goes back in time the rallies would have found him out.

      I remain of the view that we may well not be getting the full truth and maybe not the truth at all.

  5. Alexwild says:

    “Frankly this troubles me a lot more than a theoretical hole in the numbers…..”

    While the hole in my shoe keeps letting in water…letting in water..

    Neil – The Young Ones…1984.

    1. Anonymous says:

      I presume that you are pointing out that the real reason for the PM returning or remaining in Greece may well have had nothing to do with matters monetary or fiscal.   Thanks for drawing attention to  this article.

      1. Anonymous says:

        And also to the fact that it might be suicidal for Greece to decide to default/leave Euro at least at present time. She will do as she is told.

        1. Anonymous says:

          Thanks for the Vassillis as there is little reporting of this in the UK. The news from the Eastern Mediterranean has concentrated on the Palestinian state and a UK parliamentary group looking to approve it….

          Am I alone in thinking that rising tensions in the Balkans has a poor historical track record?

          1. Anonymous says:

            Shaun – a very perceptive remark. Even today tensions between specific states are running high and for all the talk of co-operation leading EVENTUALLY to EU membership, on the ground there are still serious cracks which no amount of wallpapering can hide. Tension here is almost palpable at times and for historical reasons, it will be ever thus…. 

          2. Anonymous says:

            Greece is locked in a silly war of words over the territory name Makedonia and using it’s EU veto against FYROM. I do not know who (if anyone) is right here but the Italians and Austrians can accept both have lands named Tyrol

          3. Anonymous says:

            Yes the Greece/Makedonia spat is pathetic in my opinion. Concerning Austria/Italy and their Tyrol(s), I think this just proves that “centuries of sophistication” have sway over a collection of (Balkan) states who were a) under foreign rule for several centuries and b) semi-forcibly joined together (Serbia, Montenegro, Croatia, Slovenia etc…)  

          4. Anonymous says:

            Macedonia is a geographical area extending in three countries Greece, FYROM and Bulgaria. It has no nationality connotation. Having said that, if some people decide to create a new artifical nation for political purposes (Tito in Yugoslavia) and this persists a couple of generation a new nation can be indeed born. However, since other countries use the same term to denote very different things and if it becomes a country’s name then they cannot use it (then it becomes an exclusive term for one group of people) the Greek position (which is fair and generous since the name was used first by them) is that our northern neighbour to have a combined name: e.g. North Macedonia, Upper Macedonia an  adjective before Macedonia so that I who come from Greek Macedonia be also able to use the name to define me and as a brand name for the Macedonian cheese and sweets I produce and sell. My identity and my income depends on this and I will fight to the bitter end so that they won’t be abolished. If they want to use the name fine (we are honoured and impressed) but they should use an adjective in front so that they have no exclusivity in the name.

          5. Anonymous says:

            Thank you for an insightful reply. I wish you success in your business.

          6. Anonymous says:

            It wouldn’t have been a problem if FYROM has a region called Macedonia (which is indeed true). Greeks are absolutely fine and in fact delighted by this, nobody can have any objections. It becomes a problem when you want to use the term for the whole country, then it becomes legally under international law an exclusive term. This cannot be accpeted and that’s why the Greek position is for FYROM to have a combined name, an adjective before the term so that they have no exclusivity for the name. This is a crystal clear and fair position.

          7. Anonymous says:

            Vassilis – I am not a legal expert but I note that Ireland is a country and Northern Ireland is a separate country. A little compromise and common sense help, for example Czechoslovakia had a negotiated a peaceful break up called the velvet divorce – where Yugoslavia had a brutal and costly civil war.

            Compromise is required from both sides. I am hoping for great statesmen to bring common sense, peace and prosperity to the region.

  6. Anonymous says:

    Shaun and gentlemen – sorry you are all wrong re rogue trader – what you are looking at is Edith Piaf – “Non, je ne regret rien”

  7. Anonymous says:

    Hi Shaun,

    Funny you should mention spin at UBS, we’ve just published on article looking at just that, as well as asking Ken and Kim to expand on your point last week ‘that you never hear of a rogue trader that makes profits’. From the article:

    “The vital debate is over the word “rogue”.  It’s a short word that
    fits headlines. It’s great for spinning – it suggests a one-off bad
    apple, that he (invariably a he) has been isolated, and life can
    continue as before.  And most importantly, it absolves the other apples
    in the barrel….”

    http://www.mindfulmoney.co.uk/7307/investing-strategy-/ubs-fraud-aint-nothin-but-a-rogue-thing.html

    Thought you and your readers would find it an interesting read.

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