Dick Spring
Question:251 Mr. Spring asked the Minister for Finance his proposals to increase individual and overall caps on business expansion schemes to encourage economic development. [28525/01]
Written Answers. - Business Expansion Schemes.
The business expansion scheme, BES, provides individual investors with tax relief in respect of an investment in companies carrying out certain activities, for example, manufacturing. A company can raise up to a maximum of £250,000, 317,500, under the scheme while the maximum amount an individual can claim tax relief for in any one year is £25,000, 31,750, which is reduced to £18,500, 23,495, for the short tax year 2001.
As the Deputy will be aware, the BES is due to expire on 31 December 2001. I will be considering whether to extend the scheme for a further period during the preparations for the forthcoming budget and Finance Bill. I will bear in mind the investor and company limits in that context.