Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what additional steps he has taken to restrict conversion of income into capital gains or corporation revenues following his announcement of the reversal in the top rate of income tax previously announcement in the fiscal statement of 23 September.

For individuals, it is the scope, rates and allowances of Capital Gains Tax that restrict the conversion of income into capital gains. At the Autumn Statement, the Chancellor announced that the annual exempt amount will be cut to £6,000 for tax year 2023-24 and to £3,000 for subsequent years.

In relation to Corporation Tax, specific anti-avoidance rules apply where income is converted into capital gains in order to use losses.