Schedule 16 - Community investment tax rlief
Finance Bill
11:00 am
Mr Howard Flight (Arundel and South Downs, Conservative)
In the round, we wish CDFIs well and success. The Minister slightly misinterpreted my point. There is no doubt that venture capital incentives from the public sector have had a poor record and that harnessing private sector venture capital expertise for the benefit of deprived areas is a sensible approach.
My point was that a tax credit is being used for what amounts to a subsidy—an understandable justification. That makes it complex for both the Revenue and investors. Venture capital trusts, for example, have been relatively successful because they have been relatively simple, and I hope that the complexities inherent in using the tax system will not act as a drag on the success of this scheme. That is related to the issue of the three-year and five-year periods.
If we want the measure to succeed, the tax rules need to be as clear and straightforward as possible, but it is difficult conceptually to ensure that for a measure that in reality provides a subsidy. However, we wish the measure well. Let us hope that the outstanding issues will be ironed out satisfactorily.
Question put and agreed to.
Schedule 16 agreed to.
Schedule 17 agreed to.