UK Government Extends EIS & VCT Sunset Clauses to 2035
The Treasury has officially pushed the deadline for the Enterprise Investment Scheme (EIS) and Venture Capital Trust (VCT) sunset clauses out to April 2035. This move is a massive relief for investors, entrepreneurs, and everyone else that has been turned on a half‑spin by the looming question of when the schemes might disappear.
Why It Matters
- Guaranteed Funding Pathway: Both EIS and VCT have funneled billions of pounds into start‑ups over the last decade.
- Less Uncertainty: The extension removes the nagging fear that the tax incentives might vanish at any moment, which could have deterred fresh entrants and upcoming investors.
- Start‑up Lifeline: With the extension in place, the UK’s bubbling start‑up scene gets a steady source of capital to keep growing.
Industry Voice
Investment Manager Nicholas Hyett from Wealth Club spoke on the news:
“The announcement that the government is extending the VCT and EIS sunset clauses out to 2035 is good news for two schemes that have supported billions of pounds worth of investment into UK start‑ups.
It removes uncertainty that has been lingering over the sector for some time, potentially putting off new entrants and new investors, and secures a crucial source of funding for the UK’s blossoming start‑up scene.
It is a shame that the sunset clause hasn’t been abolished altogether – which would have avoided a repeat of the current uncertainty in a decade’s time – but with the Labour Party also voicing support or the schemes, the extension is welcome nonetheless.”
Looking Ahead
While this extension buys the sector some breathing room, many are still hoping for the full abolition of the sunset clauses. For now, however, start‑ups and investors can celebrate a clear runway that will keep the UK’s entrepreneurial momentum rolling all the way to 2035.
