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Albion doubles tax revenue to HM Treasury

Albion Ventures, a UK venture capital investor, has published research showing its investments into smaller companies have created over 2,000 full time jobs which will generate GBP16.5m

Albion Ventures, a UK venture capital investor, has published research showing its investments into smaller companies have created over 2,000 full time jobs which will generate GBP16.5m this year in income tax and national insurance. 

This annual contribution has doubled since Albion Ventures first conducted this research in 2007, over which time its investee companies have also created a further 850 jobs.

The government provides an incentive to for retail investors to invest in new shares in venture capital yrusts by offering income tax relief on their investment. This has varied over time but currently investors receive an initial 30 per cent back on investments up to GBP200,000 in the tax year of investment. 

Since launching its first VCT in 1996 Albion Ventures has raised GBP225.9m across seven VCTs of which GBP65.7m has been claimed by shareholders as tax relief.

Therefore the current annual return on capital for HM Treasury is 25 per cent before allowing for corporation tax on business activities created by the growing companies Albion Ventures invests in.

Patrick Reeve, managing partner at Albion Ventures, says: ‘Not only have we created over 2,000 new jobs but our VCTs clearly benefit UK plc’s balance sheet and also stimulate enterprise, entrepreneurship and ground breaking advances in many sectors. We have also returned over GBP81m in cash to shareholders proving that VCTs are good for government, good for enterprise and good for shareholders.’

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