The Chancellor announced in his budget that Small Businesses will benefit from a change in the tax relief offered to investors in Venture Capital Trust Schemes. In simple terms tax relief will be increased from the current 20% to 40% - making it significantly more attractive to higher rate tax payers.
Our view
Big deal - if you are a small business never sell out to someone who wants a share of your business in its early stages - go it alone - and take advice from people like us - to put together a suitable business plan - it may be better for you to borrow - and build yourself rather than give up ownership.
Conversely, for higher rate tax payers this is a great opportunity to place money in a higher risk area with full tax breaks and significant potential rewards.
Contact us about either Venture Capital or Business Planning.