§ Mrs. Curtis-ThomasTo ask the Chancellor of the Exchequer what assessment he has made of the benefits of introducing a system of tax allowances for entrepreneurial new companies. [124760]
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§ Mr. TimmsThe Government are introducing a wide range of initiatives that will benefit entrepreneurial new companies. Small companies will benefit from the new 10 per cent. starting rate for Corporation Tax. R&D tax credits will encourage innovation by small and medium-sized companies. They increase tax relief for R&D spending, and companies not in profit such as start-up ventures, can take the relief up front as a cash payment. The Corporate Venturing Scheme will encourage companies to invest in small, higher-risk trading companies. The investment will attract corporation tax relief at 20 per cent. Enterprise Management Incentives will make it easier for new companies to attract and retain the best people. Companies can reward key staff with share options free of income tax and national insurance charges. The development of each of these three schemes has involved detailed consultation with businesses and representative bodies. All three have been welcomed.