Clause 31 - Small companies' rate and fraction for financial year 2002
Finance Bill
3:00 pm
Ms Dawn Primarolo (Paymaster General, HM Treasury; Bristol South, Labour)
I am aware of the strength of feeling of some of those in the unincorporated sector about what they perceive as the advantages of incorporation, even though they do not choose that route for the structure of their businesses. All I can say to the hon. Gentleman is that the Government have looked carefully at that.
We seek to strike a balance as best we can in not driving businesses into a particular structure. The balance is not perfect. The decisions that businesses take, the access they have to different relief and their structure are very much choices for them. We are not deliberately driving people into incorporation: we recognise the differences. I understand and recognise the strong feelings that are held by some in the unincorporated sector. As the Minister concerned, I continue to look carefully at that, and at how the tax system works for the different company structures.