§ Mr. Brightasked the Chancellor of the Exchequer (1) if he has any evidence that the business expansion scheme is being used to avoid tax through farming operations;
(2) how many farming operations have been given provisional clearance by the Inland Revenue as eligible for the business expansion scheme's concessions.
§ Mr. MooreIt is in the nature of the business expansion scheme that investors get tax relief for qualifying investments. Farming is a qualifying trade and I am aware that a number of such companies have advertised their intention to raise money under the scheme.
There is no requirement for companies or individuals to seek Inland Revenue approval in advance of issuing shares which qualify for the business expansion scheme and no formal system of advance clearance.