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VCT tax change won't hit province

A change to European tax rules relating to venture capital trusts (VCT) won't have a significant impact on the funding of Northern Ireland companies.

The measure means that venture capital trusts - tax efficient investment schemes, normally backed by high net worth individuals, which invest in small companies - would lose tax relief on investments of up to £200,000 a year.

But there are no VCT funds based in Northern Ireland and very little VCT money is currently backing companies here.

"The critical knowledge-based new economy companies who have the ability to transform the Northern Ireland economy are unlikely to be affected at this time," Alan Watts, director of business angel network Halo NI said.

"The effect of the new Seed Enterprise Investment Scheme is likely to far outweigh any short-term negative effects," said Mr Watts.

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