Finance Bill

Debate between Andrew Love and Gavin Williamson

Monday 12th July 2010 Commons Chamber

[Gavin Williamson]

I am obviously far below the pay grade of my hon. Friends on the Front Bench, but I am sure that they have great plans to make the tax system much fairer and more equal, right across the board.

One important thing that my hon. Friends have done is reduce corporation tax, which will help so many businesses. Most importantly, they have helped small businesses—it is often small businesses that have had the most difficult time over the past few years—which is something that I warmly welcome.

[Mr Love]

On small businesses, is there not some concern that unincorporated individuals will now incorporate because of the reduction in the small business tax rate, which will cause avoidance by another route?

[Gavin Williamson]

The hon. Gentleman makes an interesting point, although more people becoming incorporated as limited companies will reduce the amount of tax avoidance from which people could perhaps benefit as sole traders.