§ Mr. Beithasked the Chancellor of the Exchequer whether any EEC countries make provision for an initial amount of equity investment of up to £5,000 in small companies by an individual to be allowable against tax; and whether, in order to stimulate investment in small business, he will consider the merit of introducing a similar proposal in Great Britain.
§ Mr. Joel Barnett:None so far as I am aware, but France has recently introduced a provision under which individuals may deduct from taxable income up to 5,000 francs—about £600 at the current rate of exchange—per annum provided it is invested in shares of newly created companies in new shares issued by existing companies folowing capital increases.
§ Mr. Beithasked the Chancellor of the Exchequer whether, in order to stimulate investment in small business, he will consider making provision for substantiated equity losses in small companies to be allowable against income tax if there is an inadequate capital gains tax liability in that year against which it can be offset.
§ Mr. Robert Sheldon:We are continuing to look for effective ways of helping small businesses. I have noted the hon. Gentleman's suggestion, but at this stage in our study it would not be helpful for me to comment on particular schemes.