Oral Answers to Questions
Debate between Gordon Banks and Mark Hoban(13 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Gordon Banks (Ochil and South Perthshire) (Lab)
4. What recent assessment he has made of the effects of the change in the rate of capital gains tax on the number of business start-ups.
The Financial Secretary to the Treasury (Mr Mark Hoban)
The change in the rate of capital gains tax is not expected to have a material impact on the number of business start-ups. The lifetime limit on gains qualifying for the entrepreneurs relief—the 10% CGT rate—was increased from £2 million to £5 million in the Budget. That will benefit entrepreneurs and small business owners.
Gordon Banks
I thank the Financial Secretary for his response, but does he share my concern that the change in capital gains tax will mean a reduction in businesses in the private housing rental sector, and with it, as predicted by Rightmove, a growth in rents and a shrinkage in the number of houses for rent? If so, what is he going to do about it?