Replying to a question from Buckingham Tory MP John Bercow, a member of the Tory Treasury Team, Boateng said the intermediaries would have to be accredited as Community Development Finance Institutions under the rules of the scheme.
Boateng said CDFIs would provide capital and technical assistance to businesses and social enterprises in disadvantaged communities that find it difficult to access mainstream commercial finance.
Qualifying investments will be debt or equity investments made for a minimum period of five years.
The scheme will come into force ‘as soon as possible after state aids approval is obtained from Brussels’, he said.
The amount of relief will be 5% of the amount invested for the tax year orthe accounting period of a corporate investor in which a qualifying investment is made and for each of the following four years or periods.
The tax relief will be set against the investor’s overall income tax orcorporation tax liability.
An individual investing £310,000 could obtain a reduction in tax of £3,500 over five years – or £32,500 in total.