|Business Expansion Scheme|
The B.E.S. introduced in 1983 in the UK, was to facilitate for individuals to purchase equity shares in unlisted companies and to obtain tax relief, up to £40,000 p.a. on the amount invested. The scheme flowed from provisions in the 1983 Finance Act and the intention was to aid small companies in obtaining finance from private investors. The tax relief was available until 5 April 1987 and was given at the highest marginal rates of tax which the investor paid. The investment in any one year may be spread over more than one company in minimum units of £500. Husband and wife were treated as one person for the purpose of the £40,000 limit.
|Reference: The Penguin Business Dictionary, 3rd edt.|