Tax: Changes

Lord Rooker Excerpts

Tuesday 29th April 2025 Lords Chamber

[Lord Livermore (Lab)]

I do not agree with the substantive bulk of the noble Lord’s question. He mentions the capital gains tax figures. The latest outturn data for capital gains tax relates mainly to capital gains tax liabilities in the 2023-24 tax year, so pre-dates the announcement of non-dom reforms by the previous Government and this one. This Government’s tax reforms to the non-dom regime and to capital gains tax keep the UK an attractive place to live and to invest, while ensuring that everyone who is a long-term resident pays their taxes here, helping to fairly fund our public services. The UK’s main rate of capital gains tax is lower than in any other European G7 country, as is our corporate tax rate, and our new residence-based regime is simpler and more attractive to new arrivals than the non-dom regime it replaces.

[Lord Rooker (Lab)]

Given the answer that my noble friend has just given, the best estimate I have seen is that the top 10% of taxpayers pay about 34% of their income in total tax while the bottom 10% pay 47% of their income in tax. Should we not be looking at the inequalities of the tax system a little quicker?

[Lord Livermore (Lab)]

I agree with my noble friend that it is important to look at inequality right across the tax system and across our society. This Government are of course committed to reducing that through measures such as the minimum wage increases we have seen recently. Of course, successful businesses and entrepreneurs who create jobs and wealth are the engine of economic growth in our society. We will support them to succeed while ensuring that the wealthiest pay their fair share towards the public finances.