The 2011 Budget introduces significant improvements with proposals that will extend the enterprise investment scheme (EIS) and venture capital trust (VCT) rules. All of the new announcements, which are summarised below, are subject to EU State aid approval. This is very welcome news since these changes have been requested by those in the industry over a period of time.

EIS income tax relief will be available at the rate of 30%, an increase from the present 20% relief.