An online survey is designed to provide a clearer picture of ways to stimulate investment with various proposals for potential tax breaks.

Patient capital supports small companies at the early growth stage and the consultation highlights the shortage of sources of patient capital in the UK. It is likely to consider the introduction of a new tax relief to stimulate investment.

The consultation looks at current tax relief schemes including tax advantaged venture capital schemes (enterprise investment scheme, seed enterprise investment scheme and venture capital trusts scheme), social investment tax relief, entrepreneurs’ relief, investors’ relief and business property relief.

The government is seeking feedback on a number of ideas about how to make the current system more efficient and effective.

Already there is criticism of the overly complex tax relief system so the introduction of another relief could create more confusion. The government is likely to review any changes with an eye to avoiding the introduction of rushed legislation.

The Treasury Financing growth in innovative firms consultation closes on 22 September 2017.

 The online survey on the consultation is available here