EISA’s Director General, Christiana Stewart-Lockhart has written to members this morning offering an important update on the government’s position on the EIS Sunset Clause.
Stewart-Lockhart writes “as you may know, the Treasury Select Committee has been conducting an Inquiry into Venture Capital. We provided written and oral evidence last June and thank you to the many EISA members who contributed to our submission. I’m delighted to let you know that the Committee found that “the schemes are critical to maintaining investment in early-stage companies, and the lack of certainty around their renewal could damage confidence in investing in the UK’s small businesses.” The MPs have called on the Chancellor to provide clarity on the extension of these schemes in next week’s Budget. Full details here.
In his response to the Committee, the Chancellor has confirmed that “it is the government’s firm intention to extend them beyond the current sunset on 6 April 2025.” In his letter to Harriett Baldwin MP, Chair of the Treasury Committee, he explains, “You asked whether the Northern Ireland Protocol represented a “barrier” to the extension of the two schemes. The government does not recognise this characterisation.” His full letter can be read here.
This is very positive and welcome news and the EISA look forward to receiving further details of the extensions in due course”.
