The aim of this measure is to help smaller, riskier UK companies to compete for finance by increasing the incentive for people to invest in smaller companies, which face barriers in raising external finance. This will be achieved by increasing the EIS rate and the investment limits and company size thresholds for both EIS and VCTs.
In addition it is proposed to help the EIS and VCT scheme focus better on higher risk companies and target tax relief more appropriately. Feed In Tariff based trades will be excluded. This will help prevent these schemes funding activity which receives the benefit of a subsidy.