Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department made an assessment of the potential impact of its proposals to change the (a) income and (b) net asset financial promotion exemption thresholds for defining high-net-worth (i) individuals and (ii) sophisticated investors on trends in the level of regional economic development.

The changes to the financial promotion exemptions that came into force on 31 January 2024 were subject to a public consultation which closed in March 2022. Respondents to the consultation were broadly supportive of the changes being made. Impacts of the proposals were considered, and a de minimis impact assessment was published alongside the final reforms.

However, the Government recognises the significant concerns that have been raised recently about these changes. I met last week with the angel investing sector and listened carefully to the representations made, and the Government is working closely with the sector to address the concerns raised.