§ Mr. Moynihanasked the Chancellor of the Exchequer whether personal tax relief is available under the terms of the business expansion scheme for qualifying individuals investing non-interest bearing loan capital in eligible companies without participation in the share capital of the company.
247W
§ Mr. MooreThe business scheme provides income tax relief for individuals who invest in new, full risk, ordinary shares or qualifying companies with which they are not connected. Investments of loan capital, whether or not they carry interest, do not come within the scheme.
However, where a loan advanced to a person carrying on a trade, profession or vocation, and used wholly for the purposes of that activity, becomes irrecoverable, the loss may be set against other gains in determining the lender's liability to capital gains tax.