HC Deb 10 March 1981 vol 1000 c781

Sixthly, we have looked at ways of encouraging people who are unemployed, particularly those who have just become redundant, to help themselves, and the economy, by setting up in business. Redundancy payments and other payments made on termination of employment are at present taxable if they exceed £10,000. I am raising that threshold to £25,000 with effect from 6 April. In addition, the rules for the taxation of these payments will be simplified.

Furthermore, we are looking at the suggestion that the existing social security rules act as a deterrent to initiative. We are considering whether they could be altered, or other arrangements made, so as to encourage people who have been declared redundant, or who have been unemployed for some time, to start their own new small business.

All these measures will be of significant help to small businesses. But I intend to go further and have two new measures to announce.