Tax Planning Strategy 152 | Early Stage Venture Capital Limited Partnership

The tax incentives for Early Stage Venture Capital Limited Partnerships (ESVCLP) apply from 1st July 2016 and provides partners with a 10% non-refundable tax offset on capital invested during the year. The maximum fund size for ESVCLPs is $200m and ESVCLPs are no longer required to divest a company when its value exceeds $250m. 

Entities in which the ESVCLP has invested can invest in other entities provided that after the investment the investee controls the other entity and the other entity broadly satisfies the requirements to be an eligible venture capital investment. 

To access the tax concessions, you need to ensure the investment in the ESVCLP meets the Venture Capital Act 2002 and ITAA 1997.