By Daniel Hunter
The Prime Minister and Lord Young have chaired a panel discussion at Downing Street with business angels, entrepreneurs and professional advisers, to share views on issues affecting the angel investment sector and to discuss improvements to the conditions for new enterprise in the UK.
The Government wants to make the UK the best place to start, finance and grow a business; and making it easier for smaller and start-up businesses to access finance is one of the Government’s key priorities.
To unlock creativity and entrepreneurial talent in the UK, and encourage more people to invest in new business start ups, the Government has:
- increased the rate of income tax relief for the Enterprise Investment Scheme to 30 percent to encourage more equity investment in start-ups;
- doubled the investor limits to £1 million per year from this April;
- launched the new Seed Enterprise Investment Scheme, which provides 50 per cent rate of income tax relief for individuals who invest in new early stage businesses; and
- from April, for one year only, to kick start the scheme there will be a capital gains tax holiday, so gains can be re-invested into start-ups and be exempted from capital gains tax.
These generous tax breaks will boost investment in small businesses, and help to create strong, sustainable growth in the UK.
“It will be new business creation that will drive jobs and success for the future," Prime Minister David Cameron said.
"I think this agenda is more important than ever when you look around the world and you see how businesses can go from an idea in someone’s brain, a practical bit of work in someone’s garage to a multi-billion pound business in just a few years.
"I think that is the exciting potential of what new businesses and business start-ups provide. The people in this room are absolutely essential to Britain’s economic revival and I hope that it’s recognised that the government is trying to do what it can to help Angels and business investment.”
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