HC Deb 12 March 1986 vol 93 cc500-1W
Mr. David Howell

asked the Chancellor of the Exchequer why it is the practice of the Inland Revenue to treat the enterprise allowance as trading income rather than as grant.

Mr. Lawson

The enterprise allowance is intended to supplement the takings of a business during its first year and its tax treatment as a trading receipt follows from this. A grant paid for a similar purpose would be taxable in the same way.