Select Committee on Treasury Written Evidence


Supplementary memorandum submitted by GMB

  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[120] 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.

June 2007






120   http://www.hmrc.gov.uk/shareschemes/bvca_and_fb2003_carried_interest.pdf Back


 
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