Topical question asked in the House of Commons, by Michael Fallon (Conservative). It was answered on Thursday, 3 June 2010 on behalf of the Department for Business, Innovation and Skills.

Topical Questions

Question: Can the Secretary of State reassure us that any changes to the capital gains tax regime will not reduce investment in business, particularly in new start-up businesses, and will not undermine schemes of employee share ownership?

Answer: As the hon. Gentleman knows perfectly well, the coalition agreement envisages the reform of capital gains tax as a way of making the tax system fairer and, among other things, creating revenue to help lift the tax threshold and lift very large numbers of low earners out of tax. We are conscious of the impact of capital gains tax on business, and we want to make it clear that any reforms will acknowledge the role of entrepreneurship, and not damage it.

Secondary information