Budget 2004

Business Taxation

Corporate Venturing Scheme *

• 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 £15m (or £16m post investment)
• minimum holding period 3 years
• 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.

* Qualification rules are complex, Inland Revenue 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.