Business: Tax Allowances
The question
To ask the Chancellor of the Exchequer, what assessment he has made of the effectiveness of existing tax incentives in encouraging investment in university spin-out companies at the scale-up stage.
Answered by Treasury
At the last Budget, the government announced a comprehensive package of entrepreneurship tax measures designed to provide substantially enhanced support for scaling businesses across the UK.
This includes doubling the maximum amount that a company can raise through the Enterprise Investment Scheme (EIS) and the Venture Capital Trust (VCT) scheme.
Overall, the changes announced at the Budget in 2025 are forecast to increase investment by around £100 million per year into high-growth scaling companies, including university spin outs, thanks to the increased scheme limits.
The government also supports the creation of spin-outs through the £280 million per year Higher Education Innovation Fund, which is delivered by UK Research and Innovation.
Further information on entrepreneurship tax incentives can be found in the Entrepreneurship prospectus published at Budget 2025 - Budget 2025 in full - GOV.UK
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