On 6 July 2011 HM Treasury issued a consultation document titled
Tax-advantaged venture capital schemes, although it is mainly aimed
at the Enterprise Initiative Scheme (EIS). Its purpose is to gather
views on a new scheme for early stage investment by Business
Angels, to be known as the Business Angel Seed Investment Scheme
("BASIS"), and on a variety of other reforms which are
intended to improve the effectiveness of the EIS and VCT
schemes.
The consultation is split into three main themes.
Support for seed investment via BASIS
In recognition of the lack of funding to early stage companies,
particularly high tech and/or innovative businesses, greater
incentive is needed than currently exists under EIS and VCT
schemes. Coupled with the need for funding it is recognised
that such companies would also benefit from business advice and
expertise. As a result, it is proposed that enhanced but
unspecified relief should be available for investment by a
