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Clause 57 - Capital gains roll-over relief: relevant classes of assets

Part of Finance (No. 2) Bill – in a Public Bill Committee at 10:45 am on 13th May 2014.

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Photo of Shabana Mahmood Shabana Mahmood Shadow Minister (Treasury) 10:45 am, 13th May 2014

Clause 57 is a technical amendment in relation to capital gains tax roll-over relief on business assets. Essentially, it is possible to defer capital gains tax when a qualifying business asset is sold, and to reinvest the proceeds in a replacement qualifying business asset. The clause updates the list of qualifying assets following a change in the EU rules affecting one type of EU agricultural subsidy. It will ensure that farmers are not disadvantaged by changes to the EU’s agricultural subsidy scheme.

What discussions has the Minister had with farmers about the change? Will he confirm that no additional changes will be required following the changes to EU rules that have prompted the clause? How will farmers be made sufficiently familiar with the change? Will there be an additional administrative burden on farming businesses, and if so, how big does the Minister expect that burden to be?