§ 11. Mr. Keith Darvill (Upminster)What representations he has received from businesses on his decision to cut capital gains tax for long-term investments. [125835]
§ The Paymaster General (Dawn Primarolo)This year's Budget proposals for the improvements in the capital gains tax business assets taper were formulated after wide consultation with venture capitalists and others. 450 The views of business on the proposals to use taper reform to boost productivity and increase the provision of risk capital have been very positively received.
§ Mr. DarvillIt is refreshing that we have a Government who are taking measures that will increase the flow of investment and are widely supported, particularly by owners of small and medium enterprises. Will my hon. Friend tell the House about any other measures that she may be considering to increase investment in businesses which will help to create more jobs and prosperity?
§ Dawn PrimaroloI am glad that my hon. Friend acknowledges that the vast majority of people will receive a significant benefit from these provisions. I think that he may have been referring to proposals for new deferral relief on corporation tax paid by companies in respect of capital gains or on disposal of large shareholdings. A consultation document on the matter will be published shortly.