The Chancellor has announced changes to Enterprise Investment Schemes, the Seed Enterprise Investment Scheme and Venture Capital Trusts in today's Budget.
George Osborne said the move was being made to ensure they are compliant with the latest state aid rules and increasing support to high growth companies. The Treasury summarised the changes as follows.

According to the official Budget papers, released this afternoon, the government will, subject to state aid approval:

• require that companies must be less than 12 years old when receiving their first EIS or VCT investment, except where the investment will lead to a substantial change in the company's activity
• introduce a cap on total investment received under the tax-advantaged venture capital schemes of £15 million, increasing to £20 million for knowledge-intensive companies
• increase the employee limit for knowledge-intensive companies to 499 employees, from the current limit of 249 employees
• The government will also smooth the interactions between the schemes by removing the requirement that 70% of the funds raised under SEIS must have been spent before EIS or VCT funding can be raised.

Venture capital schemes: changes to scheme rules

The government will, subject to and with effect from the date of state aid clearance:

• require that all investments are made with the intention to grow and develop a business
• require that all investors are 'independent' from the company at the time of the first share 
issue
• introduce new qualifying criteria to limit relief to companies where the first commercial sale took place within the previous 12 years; this rule will apply except where the total investment represents more than 50% of turnover averaged over the preceding 5 years
• cap the total investment a company may receive under the Enterprise Investment Scheme (EIS) and Venture Capital Trusts (VCT) at £15 million, or £20 million for companies that meet certain conditions demonstrating that they are 'knowledge intensive'
• increase the employee limit for knowledge intensive companies to 499 employees 
The government will, with effect from 6 April 2015, remove the requirement that 70% of Seed Enterprise Investment Scheme (SEIS) money must be spent before EIS of VCT funding can be raised

Venture capital schemes: new industry forum
The government will launch a new industry forum on the operation and use of the venture capital schemes.

Venture capital schemes: renewable energy
As announced at Autumn Statement 2014, companies benefiting substantially from subsidies for the generation of renewable energy will be excluded from also benefiting from EIS, SEIS and VCTs with effect from 6 April 2015, with the exception of community energy generation undertaken by qualifying organisations which will in future become eligible for the Social Investment Tax Relief (SITR). The government will allow a transition period of 6 months following state aid clearance for the expansion of SITR before eligibility for EIS, SEIS and VCT is withdrawn.

Social investment
The government will set the rate of Income Tax relief for investment in Social Venture Capital Trusts (Social VCT) at 30%, subject to state aid clearance. Investors will pay no tax on dividends received from a Social VCT or capital gains tax on disposals of shares
in Social VCTs.
Social VCTs will have the same excluded activities as the SITR. The government will legislate for Social VCTs in a future Finance Bill. The government will change the regulatory status of SITR funds so that they can be promoted on the same basis as EIS funds.