Taxation and Venture Capital Backed Entrepreneurship

Keuschnigg, Christian; Nielsen, Søren
August 2004
International Tax & Public Finance;Aug2004, Vol. 11 Issue 4, p369
Academic Journal
In recent years, venture capital has increasingly become a factor in the financing of new firms. We examine how the value of mature firms determines the incentives of entrepreneurs to start up new firms and of venture capitalists to finance and advise them. We examine how capital gains taxes as well as subsidies to start-up costs of new firms affect venture capital backed entrepreneurship. We also argue that dividend and capital gains taxes on mature firms have important consequences for start-up firms as well.


Related Articles

  • JULIAN GIBBS.  // Money Marketing;4/8/2004, p50 

    Points out that one bit of good news in the Budget of Great Britain should help the venture capital sector attract more money, and this is the Chancellor's decision to increase income tax relief on investments. Increase from 20 percent to 40 percent for 2004/05 and 2005/06; Increase in the...

  • Venture capital funds. Greene, Chris // Accountancy;Aug1987, Vol. 100 Issue 1128, p50 

    Reports on the agreement of the British Venture Capital Association with the Board of Trade and the Internal Revenue of Great Britain that will ensure that venture capital investors will no longer suffer a double charge to capital gains tax.

  • Venture trusts set for boost in CGT rise. Stodell, Hannah // Money Marketing;5/27/2010, p7 

    The article reports on the projected boost venture capital trusts after the expected rise of capital gains tax (CGT) of the emergency Budget in Great Britain.

  • Small business ignored. Gome, Amanda // BRW;5/12/2005, Vol. 27 Issue 18, p47 

    Explains that the Australia federal government's budget lacks incentives and other measures to help small business enterprises and entrepreneurs apart from tax cuts. Abolition of the three percent duty on imported business inputs imposed on manufacturers under the Tariff Concession Scheme;...

  • Medeconomics: Personal Finance - Benefits and risks of venture capital trusts. Willis, Liz // GP: General Practitioner;5/28/2010, p51 

    The article offers information on the investment in Venture capital trusts (VCTs). It states that the investment in VCTs is risky, but gives higher return and is free from capital gains tax (CGT). It also informs that reforms in pension tax rules have popularized the investments in VCTs due to...

  • TIME, MANNER, PLACE. Cheesman, Carol // Accountancy;Dec2013, Vol. 153 Issue 1442, p36 

    The article provides advice on reducing capital gains tax (CGT) to offset tax liability. It suggests the use of the annual exemption of 10,600 British pounds for the 2012-12 tax year and 10,600 British founds for 2013-14 tax year which can be used to crystallise investment gains. It looks at the...

  • A new EIS age. Foster, Lucy // Money Marketing;3/5/2009, p42 

    The article discusses the differences between enterprise investment schemes (EISs) and venture capital trusts (VCTs), as well as summarizes the benefits of investing in EIS funds in Great Britain. It mentions that EIS offers the combination of a tax efficient investment and an opportunity for...

  • Is Bermuda's allure more than tax-deep? Min Yong // Asia Insurance Review;May2010, p113 

    The article explains several reasons for the success of the insurance industry in Bermuda Islands. It states that Bermuda attracts companies because its government does not charge taxes on corporate income nor capital gains. It notes that Bermuda is often called as the world's risk capital with...

  • Finance Bill 2006 progress.  // Accountancy;Jun2006, Vol. 137 Issue 1354, p109 

    This article discusses debate during May 2-3, 2006 in Great Britain's Whole House regarding the Finance Bill. Bills were passed regarding income tax, corporation tax and capital gains tax regarding computer equipment and venture capital schemes. Also passed were laws on excise tax rates and...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics