§ Mr. Jim Cunningham
To ask the Chancellor of the Exchequer what estimate he has made of the cost of tax relief for(a) enterprise investment schemes, (b) venture capital trusts and (c) enterprise zone trusts in the financial years (i) 1994–95 and (ii) 1995–96. 159W
§ Mr. Jack
The available information is in the table.
£ million Cost of tax reliefs1 1994–95 1995–962 Enterprise 10 15 Investment Schemes Venture Capital Trusts — 50 1 Estimated cost of income tax relief and capital gains tax costs of re-investment relief and exempting gains from tax. 2 Provisional.
The cost of tax relief for enterprise zone trusts is not held centrally and could be provided only at disproportionate cost.
I am delighted that the venture capital industry and investors have responded to the challenge and opportunity offered to them by Parliament to invest in small and developing companies through venture capital trusts. The first 12 VCTs have between them raised over £150 million in the first few months of the scheme. This is excellent news for the financing and development of the companies, which are a crucial part of our growing economy. We should also congratulate the British venture capital industry on the energy they have put into raising this new form of capital for their growing business.