23 July 2009

Albion doubles tax revenue to H.M. Treasury - 850 new jobs created

Albion Ventures, one of the UK’s leading venture capital investors, has today published research showing its investments into smaller companies have created over 2,000 full time jobs which will generate £16.5* million 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 Trusts (VCTs) by offering income tax relief on their investment. This has varied over time but currently investors receive an initial 30% back on investments up to £200,000 in the tax year of investment. Since launching its first VCT in 1996 Albion Ventures has raised £225.9 million across 7 VCTs of which £65.7 million* has been claimed by shareholders as tax relief.

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

Patrick Reeve, Managing Partner at Albion Ventures said: “Not only have we created over 2000 new jobs but our VCTs clearly benefit UK plcs’ balance sheets and also stimulate enterprise, entrepreneurship and ground breaking advances in many sectors. We have also returned over £81 million in cash to shareholders proving that VCTs are good for government, good for enterprise and good for shareholders.”

*Source: Albion Ventures
**Period from November 2007 – June 2009