Lord Sikka
Main Page: Lord Sikka (Labour - Life peer)Department Debates - View all Lord Sikka's debates with the HM Treasury
UK Economy: Capital Gains Tax
Lord Sikka Excerpts(2 months, 1 week ago)
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Lord Livermore (Lab)
The noble Lord is right to say that investment is absolutely crucial to our plans for the economy—which is why we are absolutely committed to removing the barriers to private sector investment—but he knows I cannot comment on speculation about any other specific taxes.
Lord Sikka (Lab)
My Lords, research shows that taxing capital gains at lower rates than wages does not boost investment in productive assets. It fuels unfairness and tax abuse, as the well-off seek to convert income to capital gains. Is the Minister aware that taxing capital gains at the same rate as wages can raise between £12 billion and £15 billion a year and also reduce tax abuse? If so, when can we expect to see the policy change?
Lord Livermore (Lab)
I am grateful to my noble friend for his expertise on this matter. At the risk of repeating myself, he knows I would not be able to comment on speculation about other specific taxes, but we must rebuild our public finances, including by addressing the £22 billion black hole inherited from the previous Government.