‘It would be great if government stopped tinkering’

‘It would be great if government stopped tinkering’

Bruce Macfarlane, founder of MMC Ventures, talks about his hopes of what the new government will deliver.

In the latest FTAdviser video interview, Mr Macfarlane, a former managing director at Merrill Lynch, said of the new government “it would be great if they stopped tinkering.”

He said: “The constant consultation exercises at HM Revenue & Customs and HM Treasury does allows us to put in proposals.

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“Fundamentally I think the EIS scheme works pretty well. There are some technical issues that make it more difficult to operate, which I think they could eliminate or make much easier. That is the kind of thing we have recommended but they are technical rather than fundamental.

“I think the tax reliefs are about right. If they were any more generous I think they could induce people to invest when they should not be investing.

“They are sufficiently generous, particularly on the downside, to give you good protection. I mean fundamentally if you are a 45 per cent taxpayer you are risking 37.5p in the pound when you invest. That is a pretty phenomenal downside protection.

“Of course, on the upside, it is free of capital gains tax if you hold for three years and free of inheritance tax if you hold for two years. It is a very attractive scheme.”