(Except Clauses 1, 4, 5, 9, 14, 22, 42, 56, 57, 124, 130 to 135, 138, 139, 148 and 184 and Schedules 5, 6, 19 and 25, and any new Clauses and Schedules tabled by Friday 9th May 2003 relating to excise duty on spirits or RÿD tax credits for oil exploration.) - Schedule 22 - Employee securities and options

Part of Finance Bill – in a Public Bill Committee at 3:15 pm on 22 May 2003.

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Photo of Mr Howard Flight Mr Howard Flight Shadow Chief Secretary to the Treasury 3:15, 22 May 2003

I thank the Minister for her response. One purpose of amendment No. 107 is to ensure that the definitions do not include options within the scope of the charge because warrants and options are different, as the Financial Services and Markets Act 2000 makes clear. There is some confusion in this territory, and it may be of benefit to the Inland

Revenue and the Law Society to ensure that they have a common understanding.

I welcome the Paymaster General's comments on the venture capital industry. Does she envisage that discussions to review the joint letter are likely to be well under way when we come to Report? It is important with such a major change of legislation that the full effects are understood. I understand the logic of her opposing amendment No. 24, but it is unsatisfactory if the Government can rewrite the law on a whim. There is an important point of principle where those two points interrelate.

To revert to the second part of the venture capital amendment, No. 106, can the Minister clarify the meaning of ''employment-related'' in British venture capital? A statement of interpretation would clear up the other aspects of concern raised in this area.

Before sitting down, I cannot resist commenting that two eminent lawyers involved in the share scheme lawyers group have raised complaints with me, and I quoted one on the Floor of the House. One may have appeared in print, but that should be not taken as evidence that the others were unsatisfactory.

To conclude, we would like further clarification on the venture capital aspect, and if that clarification is not satisfactory, we shall press amendment No. 105 to a vote.