Clause 45 - Taper relief: holding period for business assets
Finance Bill
12:45 pm
Mr Michael Jack (Fylde, Conservative)
I am grateful to the Economic Secretary for those words. I am delighted to hear that the Inland Revenue will produce some analysis to explain how tapered tax operates and, I hope, what its economic effect is. I eagerly anticipate that.
I also thank the Economic Secretary for agreeing that economic activity was turned off and start-ups were damaged as a result of the original proposals. She said that the purpose of the clause was to address a market failure. The failure would not have been there in the first place had the Government not introduced the original tapered tax regime. If they now say that there is time to change it and put forward an economic rationale, there must have been something wrong with the original proposals. I am grateful to her for confirming that on the record.
Question put and agreed to.
Clause 45 ordered to stand part of the Bill.
Clause 46 ordered to stand part of the Bill.