Venture Capital Sector

Treasury written question – answered on 14th June 2005.

Alert me about debates like this

Photo of Charles Walker Charles Walker Conservative, Broxbourne

To ask the Chancellor of the Exchequer what measures he is taking to promote the venture capital sector in the UK; and if he will make a statement.

Photo of John Healey John Healey The Financial Secretary to the Treasury

The UK's private equity and venture capital industry is the largest in Europe, and the second largest in the world after the United States. The Government have delivered macro-economic stability that allows investors in venture capital to invest with confidence, and a low-tax environment, including an effective Capital Gains Tax rate of 10 per cent. on business assets held for at least two years, which allows them to keep more of the reward from successful investments.

The Government also make a number of direct interventions in the venture capital markets to support finance-raising by small companies affected by the equity gap, including Regional Venture Capital Funds and Venture Capital Trusts and the Enterprise Investment Scheme. A new model of support, Enterprise Capital Funds, will soon be launched by the Small Business Service, which will partner public and private money to invest in small businesses seeking venture capital.

Does this answer the above question?

Yes0 people think so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.