Oral Answers to Questions
Debate between Adrian Sanders and David Gauke(12 years ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Adrian Sanders (Torbay) (LD)
20. What his policy is on taxation on unearned wealth; and if he will make a statement.
The Exchequer Secretary to the Treasury (Mr David Gauke)
The Government are committed to a fair tax system in which those with the most contribute the most. The UK’s tax system is a progressive one, and wealthy individuals make a substantial contribution to the Exchequer. The Government have increased that contribution in a number of ways since the election.
Mr Sanders
Social mobility for younger people in Torbay is often curtailed by inequality not of income but of wealth, meaning that far too many will never be able to buy their own homes. Will he redress that imbalance by taxing unearned income as much as we tax the wages of the vast majority of my constituents?
Mr Gauke
The Government have increased stamp duty land tax on the most valuable properties. We have also increased the rate of capital gains tax. It is a question of balancing that with practicalities; we think that some of the proposals in this area may have a number of practical difficulties. But we have taken action on some of the taxes that have increased the burden on the wealthiest.
Oral Answers to Questions
Debate between Adrian Sanders and David Gauke(14 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Adrian Sanders (Torbay) (LD)
16. What steps his Department is taking to reduce the level of tax avoidance.
The Exchequer Secretary to the Treasury (Mr David Gauke)
Tackling tax avoidance is essential, and we will make every effort to do so. We are committed to preventing avoidance through deterrence, and by ensuring that we have a robust legislative framework. We detect avoidance early using the disclosure of tax avoidance schemes rules and other information. We tackle avoidance quickly where we find it by strengthening legislation or through the operational work of Her Majesty’s Revenue and Customs.
Mr Sanders
Recent research has shown that up to £120 billion a year is lost to tax avoidance. Will the Minister ensure that he looks at the way in which HMRC works, and does better so that people will not have to pay higher taxes and receive poorer services as a consequence?
Mr Gauke
I am grateful to the hon. Gentleman for his question. We would disagree with the number, as the tax gap estimate produced by HMRC is £40 billion. None the less, that is a significant sum, and it is absolutely right that people pay the tax that is due, and HMRC will continue to pursue matters to reduce tax avoidance.