Neil Woodford has this week told the House of Lords a ‘patient capital’ tax wrapper could be one way for the Government to incentivise long-term investment.
The star fund manager told the science and technology committee on Tuesday that long-term investors are a minority in fund management, The Times reports.
The fund manager is part of the industry panel on the Patient Capital Review, which was announced by the Prime Minister in November last year.
Woodford told the committee: “My industry thinks what I do — investing in early stage, illiquid businesses that require patience and lots of engagement — is a very extreme minority sport. Very few do it.”
Commenting on the industrial strategy green paper, Woodford told the committee that the Government could potentially create a patient capital Isa.
Woodford also suggested relief on inheritance tax as one way to encourage investors to hold stocks for a minimum of seven to 10 years.
Woodford argued the UK is failing to use scale-up capital to make the most of its “remarkable” science base.
He said: “The government can incentivise capital to flow from savers into early stage disruptive, scaleable science in the UK. That would catalyse my industry.”
Woodford added that financial regulators needed to “get off the back” of science industry investors.
Legal & General chief executive Nigel Wilson and Miton Capital managing director Gervais Williams also sit on the panel.