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LONDON (Reuters) -Britain extended on Wednesday existing tax breaks for people investing in start-up companies for another 10 years, a move that had been widely expected.
Both the long-running Enterprise Investment Scheme, which allows individuals to recoup a third of their investment in start-up firms from their income tax bill, and tax reliefs on Venture Capital Trusts will be extended to April 2035.
More than 41 billion pounds ($54 billion) of capital for companies has been raised under the two schemes since their inception, the government said.
“Championing schemes with proven success is vital in our mission to support the innovators to help rebuild Britain and make every part of the country better off,” said junior finance minister James Murray.
The government said Wednesday’s announcement had no extra impact on borrowing since the previous administration had already accounted for such an extension.
Finance minister Rachel Reeves is due to deliver a budget on Oct. 30 that could include increases in capital gains and inheritance taxes, as she seeks to put the public finances on a sound footing.
Last month she outlined a 22 billion-pound shortfall in the government’s spending plans for the current financial year.
($1 = 0.7617 pounds)
(Reporting by Sarah Young and Andy Bruce; editing by William James, William Maclean)