Start-up Companies: Tax Incentives

Lord Fox Excerpts

Monday 29th April 2024 Lords Chamber

[Baroness Vere of Norbiton (Con)]

I am grateful to my noble friend. I know that HMRC regularly engages with industry and endeavours to work collaboratively with industry to improve guidance such that EIS applications can get through as quickly as possible. I hear his plea to set up a working group. I am not entirely sure whether a formal working group will be possible, but I will very happily take back his request that perhaps he and some of his colleagues can meet officials from HMRC to outline their concerns.

[Lord Fox (LD)]

My Lords, there appears to be a dissonance between the Minister’s answer and the experience that industry is reporting to us. I spoke to Tech UK this morning and it said it had recently made representations to the Treasury, with worked examples of real-life situations that absolutely uphold the issue the noble Lord has raised today. This is not just about payment; it is about retrospective payments and it really puts businesses in danger when their cash flow dries up in these situations. So I ask the Minister to harness her natural curiosity, go back to her department and dig a little deeper, because it may be publishing results, but the experience on the ground does not match that.

[Baroness Vere of Norbiton (Con)]

I hear what the noble Lord is saying and I will very happily look at the evidence that he has provided to officials in the Treasury. Perhaps he would like to join the meeting with my noble friend Lord Leigh.