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Finance Bill

I did not think for one moment that the hon. Gentleman would buy the argument, but I am confident that Government Members will accept the case and support the changes that we propose. We have listened to the concerns that were raised by business groups following the announcement. On the issues around property investments, it is important to remember that capital gains tax is just one of many factors that influence people's decisions about when to buy and sell. More importantly, the Government have taken a number of steps, both through the tax system and more broadly, to promote housing supply and improve affordability for first-time buyers. The hon. Members for Runnymede and Weybridge and for Taunton asked about the save-as-you-earn plan, and suggested that it might be unfair. Our figures show that the average amount of gain that a typical employee makes from save-as-you-earn options is well under the annual exempt amount of £9,600 a year, but I have no doubt that we will return to that point in Committee. The hon. Member for Braintree (Mr. Newmark) made an entertaining and interesting contribution. I have been trying to read his lapel badges from a distance, and I now know what they say. In 1992—hon. Members will remember that that was the year when the Labour party failed to get into government—I remember wearing a badge saying ““Don't blame me, I voted Labour””, but the wearing of lapel badges is a practice that I am happy to have grown out of. The hon. Gentleman brought several serious points to the debate, particularly with regard to how capital gains tax reform might hit small business. Entrepreneurs' relief will deliver a 10 per cent. capital gains tax rate for the vast majority of small business owners and material investors, and overall the UK continues to be an excellent place in which to do business. He asked how another 28 pages of CGT legislation could possibly constitute simplification, but it is what they do that will provide the simplification. They will sweep away layers of complex rules built up over many decades, and the legislation as drafted is necessary to ensure that the various changes are made and followed through correctly. The end result will be a substantially simpler regime. The hon. Member for Taunton asked whether the 18 per cent. CGT would lead to all sorts of avoidance. As he will be aware, there are already numerous rules in the tax code to prevent individuals from disguising income as capital gains for tax purposes. The Government have a clear track record of blocking tax avoidance if it arises, and they are consulting on options to strengthen the anti-avoidance machinery in respect of that issue.