Budget 2008

Corporate Venturing Scheme (CVS)*

• For shares issued after 31 March 2000 and before 1 April 2010.
• 20%corporation tax relief on amounts subscribe 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.
• Company must have fewer than 50 employees at time of investment and not have raised more than £2 million in the last year from CVS, EIS or VCT 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.

* Qualification rules are complex, HM Revenue & Customs’ approval required.