THE RELIEF (Hansard, 15 July 1981)

§ Mr. Peter Rees
I beg to move amendment No. 77, in page 39, line 7, at end insert 'or within such further period (not exceeding twelve months) as the Board may allow'. We have moved to the business start-up schemes, which were extensively debated in Committee. Indeed, considerable care was given to this subject in Committee. In the light of the debates and of the representations made before and after our debates in Committee, it was felt that there was still room for improvements in the provisions. I regret to say that many Government amendments are the result of our deliberations.
The amendment is designed to ensure that a company whose shares are acquired—and payment for which will attract tax relief for an individual taxpayer—must have started to trade within two years of the issue of the shares. This is a liberalisation of the existing rules and is designed to cover cases such as companies that are involved in high technology. In such cases, a little time is needed before the full merits of the company's trade become manifest. I commend the amendment.

§ Mr. Peter Rees
I beg to move amendment No. 78, in page 39, leave out line 18 and insert 'beginning with the incorporation of the company (or, if the company was incorporated more than two years before the date on which the shares were issued, beginning two years before that date) and ending'.

Mr. Deputy Speaker
With this it will be convenient to take Government amendment No. 89.

§ Mr. Rees
The amendments are designed to shorten to not more than two years before the issue of the shares the period during which the conditions for the grant of relief 1294 must be satisfied, except that since commencing business the company must always have existed to carry on a new qualifying trade wholly or mainly in the United Kingdom. I am sure that the good sense and liberality of the amendment will commend it to hon. Members.