HC Deb 17 June 1976 vol 913 cc729-30
16. Mr. David Mitchell

asked the Chancellor of the Exchequer what representations he has received asking him to alleviate the burden of double taxation of capital transfer tax and capital gains tax being payable on the same transaction.

Mr. Joel Barnett

Representations on this subject have been received from a number of professional bodies, chiefly in the context of lifetime transfers of businesses and farms.

Mr. Mitchell

Is the Minister aware that this double taxation destroys the motivation of small businesses? Does he realise that he cannot hope to get an expansion of the economy without small businesses with motivation?

Mr. Barnett

First, I do not accept that it is double taxation. We are talking about two entirely different taxes. But as I told the hon. Gentleman on the last occasion on which we debated these matters, we recognise that there is a problem, especially for small businesses. I promised to look at the matter in the context of the review that we are now undertaking on capital transfer tax both in lifetime and at death. In that context, I shall be happy to consider the matter. However, small businesses are not hurt in the exaggerated way that the hon. Gentleman would have us believe.

Mr. Fernyhough

Will my right hon. Friend say how many of the representations he received on this subject came from the 635 Labour Party constituencies and the many tens of thousands of trade union branches throughout the country?

Mr. Barnett

I do not have the full list in front of me, but I doubt whether there are many.