Clause 56 - SEIS: re-investment relief

Part of Finance Bill – in a Public Bill Committee am 10:30 am ar 11 Mehefin 2013.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Catherine McKinnell Catherine McKinnell Shadow Minister (Treasury) 10:30, 11 Mehefin 2013

Again it is a pleasure to follow the hon. Member for Braintree. He raised the question that I wanted to put to the Minister, so I too would be grateful for a reply. Obviously, the measure was originally introduced in 2012-13 and has been extended to cover the gains accruing to the investor in 2013-14, but it provides that only half of the invested amount can be set against chargeable gains. Will the Minister clarify the thinking behind that reduction and tell us what assessment has been made? I appreciate that, in response to the discussion on the previous clause, the Minister explained the number of companies that have been improved and the current investment rates, but have the Government anticipated a slowing up or a reduction as a result of the reduced reinvestment allowance? It would be helpful to the Committee if the Minister could respond to those issues and those raised by the hon. Member for Braintree.