Schedule 14 - Enterprise management incentives: amendments
Finance Bill
11:45 am
Mr Howard Flight (Arundel and South Downs, Conservative)
Amendments Nos. 23 and 29 make the same point as amendment No. 17, which relates to enterprise management incentives. In all three areas, the maximum prescribed limits are already modest, and in the case of EMIs and enterprise investment schemes, they have lost in real value by a year's modest inflation. The extension of the scope for EMIs is greatly welcomed; it is mainly dealt with in schedule 14, but that does not address the low personal limit or the low corporate value limit. Over time, unless the limits are specifically increased, the amounts become worth less and less in real terms. The amendment is designed in essence to index the limit; it is based on section 257C of the Income and Corporation Taxes Act 1988, which allows the indexation of personal tax allowances with rounding up to the nearest £100; the suggested figures of £10,000 and £100,000 are equivalent roundings, given the size of the original personal EMI limit and the original corporate value limit.
Amendment No. 23 prescribes similar proposals for enterprise investment schemes and the suggested figures are equivalent roundings, given the size of the original amounts. Likewise, in amendment No. 29 the suggested figures are equivalent roundings given the original size proposed in the Bill for corporate ventures.