LIMITS ON RELIEF (Hansard, 15 July 1981)

§ Mr. Peter Rees
I beg to move amendment No. 80, in page 40, line 9, leave out '£1,000' and insert '£500'.

Mr. Deputy Speaker
With this it will be convenient to take Government amendment No. 108.

§ Mr. Rees
This amendment is of considerable importance. As the House will know, there is an upper limit of £10,000 on the moneys that can be invested in shares of start-up companies. The lower limit originally was £1,000. That was for administrative reasons. I say that with candour, although I appreciate that that sort of explanation is not likely to commend the limit to the House. There will be pressures on the Inland Revenue in administering a scheme of that sort. However, I was strongly impressed by the powerful arguments directed to me in Committee both from my hon. Friends and from the corporation.
Notwithstanding the administrative burdens that that undoubtedly will put on the Inland Revenue in administering the scheme, we thought it right to table an amendment reducing the lower limit from £1,000 to £500, thus, as it was strongly urged. on me in Committee, making it easier for the smaller investor to participate in such schemes.
I hope that the amendments will find favour with the House.

§ Mr. Robert Sheldon
I thank the hon. and learned Member for introducing the amendments on Report. As he knows, we welcome the start-up scheme even though we feel that it is being oversold. We are anxious about some of the possibilities of fraudulent operation about which I am sure the hon. and learned Gentleman knows a great deal because of the debates we had in Committee.
I accept that whenever one lowers the limit there is bound to be an increase in the administrative burden, but it is equally wrong that £1,000 should be the amount that the investor requires to raise for the purpose. We are pleased that the hon. and learned Gentleman has accepted our proposal for a limit of £500. We shall watch to see what effect that will have on the start-up schemes that we look forward to observing with interest.