Lord Sikka
Main Page: Lord Sikka (Labour - Life peer)(3 years, 9 months ago)
Lords ChamberMy Lords, the Government absolutely realise the vital role that entrepreneurs and small business people play in the UK economy. We ensure that, in assessing any tax changes, the impact is analysed, including any behavioural impacts of those changes.
My Lords, I begin by drawing attention to my entry in the register of interests. Does the Minister agree that by taxing capital gains at the same marginal rates as income tax, the Government could end many tax avoidance schemes? Secondly, London and the south-east of England account for around 27% of the UK population but receive 50% of capital gains tax reliefs. What assessment have the Government made of the regional disparities created by their capital gains tax regime?
My Lords, the Government are absolutely committed to levelling up across the UK, including by incentivising investment in areas outside London and the south-east. When it comes to capital gains tax and wider tax measures, the report by the Wealth Tax Commission actually found that, on a narrow definition, UK taxes on wealth are about average for G7 countries, and on a slightly wider definition, our taxes on wealth are among the highest of the G7 countries.