Supplementary memorandum submitted by
Further to the evidence submitted to the Treasury
Select Committee by the British Venture Capital Association, on
Tuesday June 12th, we were particularly concerned about the answers
given regarding Capital Gains Tax Taper Relief.
The BVCA were asked directly whether they had
lobbied for the special exemption in the taper relief rules to
exclude private equity firms after the loop hole was closed in
2003, to exclude other types of share- based schemes.
Wol Kolade the Chairman of the BVCA replied
that the organisation had not lobbied for the exemption, they
had merely "supported" it.
Our research confirms that not only did the
BVCA campaign for this special exemption for their industry, they
actively negotiated it, and obtained a Memorandum of Understanding
with the Treasury, which is freely available on the HMRC website
setting out the terms agreed between themselves and the Treasury.
We would respectfully request that the Select
Committee investigate this matter further as in our opinion, the
evidence given by the BVCA could have misled the Committee in
relation to this matter.
120 http://www.hmrc.gov.uk/shareschemes/bvca_and_fb2003_carried_interest.pdf Back