I propose to take Questions Nos. 135 and 137 together.
The CGT entrepreneurial relief provided for by Finance (No. 2) Bill 2013 will apply to active entrepreneurs who invest in new businesses, engaged in relevant trading activities (as defined), carried on by them personally or through qualifying companies controlled by them in which they are full-time working directors. The relief is intended to apply to productive enterprises that will generate employment and will not therefore apply to passive investors or to investments in passive activities.
The benefit of the proposed entrepreneur relief will arise on the ultimate disposal by qualifying entrepreneurs of the chargeable business assets in which they invest. These chargeable business assets must be held for a minimum of three years and the other applicable conditions must be satisfied to qualify for relief.
Taxpayers are required to include in their tax returns details of chargeable assets acquired each year. However, it will only be on a future disposal that entitlement to the relief can be determined. Accordingly, it will be 2017 at the earliest before any tax relief under this provision will arise. From 2017, the relief may be claimed by qualifying entrepreneurs in their tax returns. These returns will require appropriate details in relation to the relief so that statistical information will be available to establish the extent to which the relief is availed of.