15 Dec 2014

Crackdown on exploitation of tax break

Blog

The Government has issued draft legislation to crack down on suspected exploitation of a tax break designed to help early-stage companies raise finance. Figures show that investors put over £1bn into the Enterprise Investment Scheme last year. The draft legislation is to block investors from using its tax breaks to fund renewable energy projects, viewed as low risk because they are underpinned by public subsidies.

Source: Financial Times

Since this is the time of year for Christmas cracker riddles, try this one: Q. When does a tax break become a tax avoidance device? A. When people use it.