Corporate Venturing Scheme (CVS): Introduction to National Statistics
Background
1. The CVS is aimed at companies considering direct investment, in the
form of a minority shareholding, in small independent higher risk trading
companies or groups of such companies. It provides tax incentives for
corporate equity investment in the same types of companies as those qualifying
under the Enterprise Investment Scheme (EIS) and Venture Capital Trust
(VCT) scheme. The incentives are available in respect of qualifying shares
issued between 1 April 2000 and 31 March 2010. The tax reliefs available
are:
- investment relief - relief against corporation tax of up to 20 per cent of the amount subscribed for full risk ordinary shares, provided that the shares are held throughout a qualification period
- deferral relief – deferral of tax on chargeable gains arising on the disposal of shares on which investment relief has been obtained and not withdrawn in full, if the gains are reinvested in new shares for which investment relief is obtained
- loss relief - relief against income for capital losses arising on most disposals of shares on which investment relief has been obtained and not withdrawn in full, net of the investment relief remaining after the disposal
2. For a more complete and detailed overview of the scheme rules please refer to the CVS guidance.
Description of the statistical table
3. The published National Statistics table contains data obtained from CVS1 Compliance Statements submitted to HM Revenue & Customs (HMRC) by qualifying companies invested in by other companies under the scheme. The table shows, by tax year, and in total: the number of companies that raised funds, the number of companies making those investments, and the sums raised/invested.
4. As companies have up to three years in which to submit a CVS1, the latest year for which data are reasonably complete is 2004-05. Therefore, statistics for subsequent years are provisional and more likely to change as described in the table footnote.
Enquiries
5. Statistical enquiries should be addressed to: Nicholas Owusu-Kessie, KAI Tax Policy & Products Analysis, HMRC, Room 2E/03, 100 Parliament Street, London, SW1A 2BQ. Telephone and email contact details are available from the National Statistics Contacts page.
6. Detailed company enquiries about the scheme should be addressed to: Small Company Enterprise Centre, TIDO, Llanishen, Cardiff, CF14 5ZG. Tel 029 2032 7400. Fax 029 2032 7398 or email the Enterprise Centre
