Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, if he will make an assessment of the potential effects of introducing a lower rate of capital gains tax for investments held for 10 years or more on encouraging long-term savings.
The current structure and rates of Capital Gains Tax balance the need to raise revenue with the need to maintain simplicity for taxpayers and support investment.
In addition capital gains and income from assets held in ISAs are entirely free of tax.
Introducing a lower rate of capital gains tax for assets held longer than 10 years would need to be considered very carefully to ensure that any benefits to taxpayers and the wider economy were significant enough to warrant the added complexity this would introduce into the tax system.