The Financial Secretary, David Gauke MP, made some important announcements at this session that you may wish to be aware of:
• The government is keen to introduce increased flexibility for the schemes to be used for ‘replacement capital’, where the amount invested in newly issued shares is at least equal to the amount invested in secondary shares. The intention is for this change to be introduced through secondary legislation at a later date, subject to State aid approval
• The government will bring forward amendments at Report stage of the Finance Bill. These are mostly technical in nature and provide clarification on certain issues. No amendments were made at this stage of the Bill.
• State aid approval has been formally granted by the European Commission. Full details of the Commission’s decision will be published in due course, but it is in line with the UK’s proposals and the changes currently being legislated for in the Finance Bill.