The Enterprise Investment Scheme Association (EISA) has called on the Government to raise initial income tax relief from 20% to 30% to stimulate investment into Britain's enterprise economy.
EISA says it is worried a proposed reduction in capital gains tax, from 40% to 18%, could remove the incentives to invest in Enterprise Investment Schemes (EIS).
Howard Flight, chairman of EISA, explains: “We are concerned that the proposed reduction in capital gains tax from 40% to 18% will reduce the attraction of the EIS to investors for deferring capital gains tax liabilities and have the effect of favouring lower risk/reward investment in established listed businesses.”
EISA says the EIS has provided nearly £6bn of investment for small businesses in Britain since its inception in 1994 and says it is important to maintain incentives to invest in EIS.
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