New Businesses: Capital Gains Tax

Lord Leigh of Hurley Excerpts

Wednesday 20th January 2021 Lords Chamber

Asked by

[Lord Leigh of Hurley]

To ask Her Majesty’s Government, further to the report by the Office for Tax Simplification OTS Capital Gains Tax Review: Simplifying by design, published on 11 November 2020, what steps they have taken to ascertain the impact of the equalisation of Capital Gains Tax to income tax on entrepreneurs starting new businesses.

[Lord Leigh of Hurley (Con)]

My Lords, I beg leave to ask the Question in my name on the Order Paper and, in so doing, draw your Lordships’ attention to my interests as disclosed in the register.

[Baroness Penn (Con)]

My Lords, in July 2020, the Chancellor commissioned the Office of Tax Simplification to examine and provide recommendations on how to make CGT as simple and efficient as possible. The Government are now considering this report and its recommendations. Any changes to the tax system will take place at a fiscal event and be informed by appropriate analysis of the impact on those affected by such changes.

[Lord Leigh of Hurley (Con)]

I am sure my noble friend the Minister will agree that, while we all want tax to be as simple as possible, one has to recognise that capital gains tax is different from other taxes: it is to reward capital that is invested and is at risk. The Laffer curve for capital gains tax is different from the curve for income tax, and we need entrepreneurs, particularly serial entrepreneurs, to start new businesses in the UK.