Asked by: Baroness McGregor-Smith (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government why they are increasing the income threshold for high net worth individuals from £100,000 to £170,000; what forecast they have made of the impact of these changes on the numbers of women who may qualify; and what forecast they have made of the impact of these changes on women’s economic parity in the UK.
Answered by Baroness Vere of Norbiton - Parliamentary Secretary (HM Treasury)
The changes to the financial promotion exemptions that came into force on 31 January 2024 were subject to a public consultation which closed in March 2022. Impacts of the proposals were considered, and a consultation response and de minimis impact assessment were published alongside the final reforms. The changes made aimed to both reduce the risk of consumer detriment and preserve the ability of SMEs to raise finance under the exemptions.
However, the Government recognises the significant concerns that have been raised recently about these changes. The Economic Secretary met last week with the angel investing sector and listened carefully to the representations made, and the Government is working closely with the sector to address the concerns raised.