Oral Answers to Questions

Debate between Mark Hoban and Gordon Banks

Tuesday 13th July 2010 Commons Chamber

[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?

[Mr Speaker]

I call the Chief Secretary. No, the Minister.