Entrepreneurs will not be damaged by any changes to capital gains tax (CGT), Business Secretary Vince Cable has assured MPs.
At Commons question time, Cable said the coalition agreement envisaged reform of CGT as a means of "making the tax system fairer", according to the Press Association.
The change would help create revenue to "help lift the tax threshold and lift very large numbers of low-earners out of tax".
But he added: "We are conscious of the impact of CGT on business. We want to make it very clear that any reforms will acknowledge the role of entrepreneurship and not damage it."
Cable was replying to Tory Michael Fallon, a member of the Treasury select committee in the last Parliament, amid mounting concern about the impact of any change to CGT in the Budget later this month.
Fallon said: "Can you reassure us that any changes to the CGT regime won't reduce investment in business, particularly in new start-up businesses, and won't undermine schemes of employee share ownership."
The Government has said it wants to increase the rate of CGT from 18% towards the rates applied to income, which could see CGT rise towards 40% or even 50%.
Critics claim the move could hit investment and jobs and have been piling pressure on Treasury ministers ahead of Chancellor George Osborne's first Budget on 22 June.
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