§ Mr. BellinghamTo ask the Secretary of State for Trade and Industry if she will make a statement on her assessment of the effect of new tax rules on shares held by academics set out in the Finance Act 2003 on the number of university spin-off companies being set up. [186332]
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§ Mr. George OsborneTo ask the Secretary of State for Trade and Industry what assessment she has made of the impact of schedule 22 of the Finance Act 2003 on university spin-out companies. [186452]
§ Ms HewittThe Government recognise the contribution that research-based entrepreneurial activity makes to this country and are committed to creating a clear fiscal environment that enables universities, public sector bodies and their researchers to grow companies based on their research.
Inland Revenue, DTI and Treasury officials have been engaged in constructive dialogue with university and public sector spin-out sector representatives to provide certainty around the tax treatment of university/public sector employees who acquire such shares. This dialogue between officials and sector representatives has led to a joint Memorandum of Understanding regarding the tax treatment of one type of spin-out company shareholding structure and some companies are understood to have taken advantage of this model. Officials will continue negotiations with interested parties to ensure that an appropriate solution to the sector's difficulties is identified and ensure that there is no long-term adverse impact on spin-out activity.