Govt to encourage investment into small firms

Date: 7th July 2011

Existing small firm owners and people looking to start a new business could be among those encouraged by recent calls for investment from the government.

The coalition has published a consultation on plans to encourage investment into small enterprises with growth potential.

Under the proposals, the government is considering reforming and simplifying the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) and looking at ways of altering the tax system to make investment more attractive.

David Gauke, exchequer secretary to the Treasury, said: "The government wants to make the UK the best place in Europe to start, finance and grow a business and we know that a vital part of this is ensuring access to a wide range of sources of finance.

"Today we are proposing a new, targeted scheme to encourage greater investment by business angels in start-ups and entrepreneurs' businesses. This, alongside our reform of the EIS and VCTs, is part of our plan to increase the competitiveness of the UK tax system, demonstrating that Britain is open for business."

Posted by Emily Smith