BVCA meaning

In this issue: Private equity (venture capital) Disclosure of beneficial ownership Equity capital markets Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Private equity (venture capital) BVCA updates model documents for early stage investments The British Private Equity and Venture Capital Association (BVCA) has revised and reissued its model documentation intended for early-stage venture capital investments, supplanting the February 2023 editions. See: LNB News 03/03/2025 18. Disclosure of beneficial ownership Companies House publishes guidance on protecting personal information on Register of Overseas Entities Companies House has published detailed guidance on safeguarding personal information on the Register of Overseas Entities (ROE) for beneficial owners, managing officers, and trust members of overseas entities who face a serious risk of harm or intimidation if their details are publicly accessible. The guidance explains the process by which these individuals may apply to stop their information being released on...

BVCA Despite being Europe’s largest and worth £2.5trn, the UK pensions market trails other nations, according to industry body the BVCA. The association said its panel’s purpose is to help UK savers make more from their investments. It intends to lift performance by removing the obstacles that stop pension schemes backing fast‑growing businesses. It will review international examples to inform its approach. The group will also examine how to channel additional capital into those companies. “We will carefully assess how pension funds in other countries have managed to invest successfully in UK funds,” said Kerry Baldwin, managing partner at IQ Capital Partners LLP and chairing the panel. Baldwin added that the panel will “get to the root of the technical and structural barriers that restrain investment by UK pension funds”...

In this issue: Company disclosures, records and registers Brexit Corporate governance Competition law Daily and weekly news alerts New and updated content Dates for your diary Trackers Useful information Company disclosures, records and registers Companies House publishes draft Identity Verification rules Companies House has issued draft identity verification rules, exercising the power granted by regulation 5 of the Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024. These rules set out the contact details, personal data and categories of supporting proof an applicant must submit when seeking to confirm their identity, together with the additional actions required before an application can be determined. The draft is accompanied by two Schedules that specify the approved evidence for identity checks undertaken by the Registrar and, separately, by an Authorised Corporate Service Provider. The framework is intended to deliver a standardised and consistent approach to identity verification for individuals engaging with Companies House. See: LNB News...

The need to value employee shares When contemplating offering shares to employees, whether directly and/or via a share plan, employer companies and existing shareholders must reflect on what the shares are worth for several reasons, including: determining how many shares are needed to meet their objectives (valuing existing shares can indicate a need to sub-divide current shares and/or establish a new class) assessing the tax that may arise on acquisition and on any later chargeable events (for example, for PAYE purposes and/or to enable an employee and the company to decide whether to make an election in relation to restricted shares), particularly in respect of: convertible securities restricted securities securities with artificially depressed or enhanced market values securities acquired for less than market value, and securities disposed of for more than market value providing information to an employee acquiring restricted shares and to the employing company that is considering entering...

Within private equity, a ratchet is a mechanism that adjusts the proportion of equity held by founders, managers and employees following investment. In a venture capital setting, ratchets operate as anti-dilution protections, safeguarding early-stage investors from dilution where later fundraisings are completed at a lower entry price than before. In a buyout setting, they are typically designed to reward management; the percentage of overall equity they own may shift according to how the business performs against forecasts and projections and against the investor’s target return. In such cases, strong performance usually increases management’s shareholding. Ratchet structures can differ markedly from one investment to the next. They frequently rely on complex financial and mathematical constructs and must take account of multiple scenarios, including different exit routes and the form of consideration used. Tax effectiveness Managers benefiting from ratchet provisions will want them structured to be as tax efficient as possible. The difficulty is that, on an exit, the slice of proceeds received by managers can be...

FORTHCOMING CHANGE relating to the tax treatment of carried interest: After a call for evidence on the tax treatment of carried interest run over summer 2024, the Autumn Budget 2024 confirmed the government’s plan to introduce an updated carried interest tax regime from 6 April 2026, positioned within the income tax system with bespoke provisions to reflect the distinctive nature of this remuneration. A consultation then examined potential new eligibility conditions for entry to the regime, with the government’s response issued in June 2025. Draft legislation for the regime was released on 21 July 2025 for inclusion in Finance Bill 2026. The rules will apply to carried interest arising on or after 6 April 2026. These measures were affirmed at the 26 November 2025 Budget, which also noted amendments to the draft to incorporate stakeholder feedback. Pending commencement of the new framework, the capital gains tax rates applicable to carried interest were lifted to 32% with effect from 6 April 2025. For further information on this carried interest tax...