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Finance Bill

Well, I am sure we will return to it in future debates. Perhaps, Sir Michael, I should speak more narrowly. The reformed regime is complemented by a focused capital gains tax relief for entrepreneurs, introduced in clause 7 and schedule 3, which we shall debate in detail in Committee. In progressing the capital gains tax reform programme, the Government have been guided by three key principles. First, we are determined to deliver a significantly simpler tax regime. There is no doubt that capital gains tax legislation had become one of the most complex parts of the tax code, and there are genuine benefits in sweeping much of that complexity away. Secondly, the Government have maintained a fair and competitive capital gains tax regime. A generous tax-free annual exempt amount will continue to keep the vast majority of individuals out of the capital gains tax net. For those with larger capital gains, it is right and fair that they should make a contribution to the public finances, and for that minority, the new 18 per cent. rate remains internationally competitive. Finally, the Government remain particularly committed to supporting businesses and promoting enterprise. We recognise the contribution to the economy and to society that our entrepreneurs make, and have introduced a new capital gains tax relief focused closely on that group. We have also retained a number of targeted tax incentives, including the enterprise investment scheme and venture capital trusts.