There are tax incentive schemes that were designed to encourage people to invest in legitimate businesses. But this particular scheme - and it appears many others - was found to be bogus. Its whole purpose was not to enable a genuine business to get off the ground but to provide a means for avoiding tax. So for those who say "what's the problem, it's perfectly legitimate to try to lower your tax bill", I think the point is, though the principle may be legitimate, the scheme itself was not.
I temped in tax barristers' chambers some years ago and was horrified to see the sorts of tricky legal manoeuvres that are used to avoid paying tax - such as selling a company for a couple of weeks and then buying it back (I didn't understand how this reduced tax liability but it did) - perfectly legal but completely unethical.
jingle At the moment in the UK, nobody pays more than 45% income tax. I believe I'm right in saying that the basic rate is 20%, those earning more than £32,000 pay 40% and those earning more than £150,000 pay a maximum of 45%, however much they earn. Anyway, no matter how low the top rate of tax is, it seems that many wealthy people are loathe to pay anything. metro.co.uk/2012/04/15/multi-millionaires-hand-over-less-than-cleaners-new-tax-figures-reveal-389124/
I think paying 50% income tax if you earn, say, £13 million a year would not be unreasonable and should be re-introduced.