Thomas Byrne (Meath East, Fianna Fail)
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Question 138: To ask the Minister for Finance if he has given consideration to a scheme whereby family members could provide loans to other family members for small business purposes on a full commercial basis but which would attract some type of tax relief to the benefit of the lending family member. [37966/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The scheme mentioned by the Deputy has not been considered. However, in my view, it would not be appropriate to offer a tax incentive to lenders where loans are provided to family members on a commercial basis. The interest repayable on such loans should act as a sufficient incentive in itself.

The Business Expansion scheme is already available to encourage investments in certain small and medium-sized businesses. Family members can provide investments under this scheme provided they are not considered "connected" for the purposes of the scheme.