New Businesses: Capital Gains Tax

Baroness Bowles of Berkhamsted Excerpts

Wednesday 20th January 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, the noble Lord puts his point very well; I entirely agree.

[Baroness Bowles of Berkhamsted (LD) [V]]

Does the Minister consider that social impact, as well as behavioural impact, should be taken into account? Is there not a case for reducing the percentage of shares that must be sold to an employee ownership trust to qualify for capital gains tax relief or some partial relief?

[Baroness Penn (Con)]

My Lords, a number of factors are taken into account by the Treasury and the OBR when assessing tax policy. On the second point, the enterprise management incentive has been protected during the Covid-19 outbreak; the Treasury has prioritised urgent support measures for people, amending legislation so that the scheme can still be used by affected firms where employees are furloughed or where their working hours have been reduced as a result of Covid.