Finance Bill

I will write to my hon. Friend to explain further why there is no yield in the current year, but I am very grateful for his expertise in this matter. Questions were also asked about serial entrepreneurs who cannot claim entrepreneur's relief and defer gains under the enterprise investment scheme. People can now choose between claiming entrepreneur's relief and paying capital gains tax at 10% or deferring a tax charge by reinvesting under the EIS and paying 18% or 28% when the postponed gain comes into charge. If they claim entrepreneur's relief they can still invest in EIS companies. The CGT deferral relief will not be available, but income tax relief under the EIS could still be available if the conditions are met. Serial entrepreneurs who have used up their lifetime limit of entrepreneur's relief will be able to claim the EIS deferral relief on gains above the limit. Allowing individuals to claim both entrepreneur's relief and deferred gains will be highly complex and is inconsistent with the aim of simplifying the tax system. The right hon. Member for East Ham also asked whether Her Majesty's Revenue and Customs is planning any extra education about the changes for customers and their advisers. HMRC will talk to representative bodies about what extra guidance is required. It will see what practical help it can give to agents generally through the "working together" agent network, and it will look at working with the media and interest groups to raise awareness among individuals who may be affected by the changes. This is a reform that protects the Exchequer while ensuring that those on lower incomes are protected and the recovery is safeguarded. We have acted in a way that is in the spirit of the coalition agreement. I do not think any Member on the Government Benches would want to raise taxes beyond a level that would maximise revenue—revenue that is, after all, used to fund a substantial increase in the income tax threshold, taking 880,000 people out of income tax. If we had raised the level further, or if we had raised it by less, we would not have been able to do so much in that particular area. Consequently, we believe that 28% is the right level. We do not intend to return to this matter, and I ask that schedule 1 be agreed.