Budget 2007

Corporate Venturing Scheme¹

• For shares issued after 31 March 2000 and before 1 April 2010.
• 20% corporation tax relief on amounts subscribed for new ordinary shares in companies with qualifying activities.
• Investment must not exceed 30% of ordinary share capital or voting power.
• At least 20% of ordinary shares must be held by individuals.
• Investee company’s gross assets must not exceed £7 million pre investment or £8 million post investment.
• Minimum holding period 3 years from later of issue date and commencement of relevant trade.
• Tax deferral on gains on corporate venturing investments reinvested in other shares attracting corporate venturing relief.
• Relief against income for capital losses (net of investment relief) on share disposals.

For more information you might like to read our dedicated article on Corporate Venturing.

¹ Qualification rules are complex, HM Revenue & Customs approval required

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.