New Businesses: Capital Gains Tax

Lord Northbrook Excerpts

Wednesday 20th January 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, the proposals for equalisation are currently in a report from the Office of Tax Simplification and do not represent government policy—although of course the Government will look at the recommendations of that report very carefully.

[Lord Northbrook (Con)]

My Lords, will my noble friend the Minister use her best endeavours to encourage the Chancellor to keep capital gains tax rates the same, and encourage him also to take the view that, within reason, lower rates of tax, particularly capital gains tax, can lead to higher revenues for the Treasury?

[Baroness Penn (Con)]

My Lords, the Government always consider the need to balance raising revenue with the principles of fairness and market efficiency when we take tax decisions. All tax decisions also take into account the impacts of behavioural change for those affected. At any fiscal event, the Government produce and publish policy costings which are scrutinised by the OBR, and these include relevant behavioural impacts on revenue.