Budget Resolution No. 7: Capital gains tax (business asset disposal relief)
400
Ayes
—
120
Noes
Passed · Government won
127 did not vote
Analysis
Commons
Commons
Parliament voted on 6 November 2024 to approve Budget Resolution No. 7, which reduces the value of Business Asset Disposal Relief (BADR), a tax relief that lowers the rate of capital gains tax paid by business owners when they sell their companies. The resolution passed by 400 votes to 120, with strong government support across Labour, Labour and Co-operative, SNP, Plaid Cymru, and Green Party members voting in favour, and Conservatives, Reform UK, the Democratic Unionist Party, and Traditional Unionist Voice voting against. Business Asset Disposal Relief currently allows qualifying business owners to pay a reduced rate of capital gains tax on proceeds from selling their business, up to a lifetime limit. This resolution reduces that relief, meaning sellers will face a higher tax rate on those gains. The change is part of the government's broader autumn 2024 Budget package, designed to raise additional public revenue. It affects entrepreneurs, business founders, and long-term shareholders who sell qualifying business assets, particularly those planning exits from owner-managed businesses. The vote divided almost entirely along party lines. Labour, the Labour and Co-operative Party, SNP, Plaid Cymru, and the Greens all voted in favour. Conservatives, Reform UK, the DUP, and Traditional Unionist Voice opposed it, arguing the change would deter entrepreneurship and reduce business investment. A small group of independents split, with seven voting aye and four voting no. The vote reflects the broader pattern of the government's autumn Budget passing through Parliament, a process that also included related contested divisions on business rates and national insurance contributions in the months that followed.
Voting Aye meant
Support the government's Budget changes to Business Asset Disposal Relief, which phased in a reduction of the relief (raising the BADR CGT rate from 10% to 14% in 2025, then 18% in 2026), raising more revenue from business disposals
Voting No meant
Oppose the government's reduction of Business Asset Disposal Relief, arguing it discourages entrepreneurship, harms small business owners and undermines incentives to build and sell businesses
520 voting MPs. Each dot is one vote; left-to-right by party. Grey dots in the centre are the 127 who did not vote.
Aye
No
Absent
Labour PartyWhipped Aye
338
0
24
Conservative and Unionist PartyWhipped No
0
108
8
Liberal Democrats
0
0
72
Labour and Co-operative PartyWhipped Aye
37
0
5
Independent
7
4
3
Scottish National PartyWhipped Aye
9
0
—
Reform UKWhipped No
0
4
3
Sinn Féin
0
0
7
Democratic Unionist PartyWhipped No
0
3
2
Green Party of England and WalesWhipped Aye
4
0
—
Plaid CymruWhipped Aye
4
0
—
Social Democratic and Labour Party
1
0
1
Alliance Party of Northern Ireland
0
0
1
Speaker
0
0
1
Traditional Unionist Voice
0
1
—
Ulster Unionist Party
0
1
—
Your Party
1
0
—
Growth requires public investment in infrastructure, services and regions; Budget sets foundation for long-term prosperity by restoring fiscal stability; inheritance tax changes affect only ~500 farms; OBR cannot model planning reform, industrial strategy, or trade policy benefits.Labour · Voted aye · Read full speech (2,935 words) →
Budget crushes business with £25bn national insurance 'jobs tax' that reduces wages more than revenue raised; inheritance tax and capital gains changes attack family businesses; no evidence Budget will drive growth; Government lacks business experience.Conservative · Voted no · Read full speech (3,345 words) →
NHS investment welcome but social care silence unacceptable; national insurance rise harms small businesses, GPs, hospices and high streets; business rates reforms insufficient; urges exemptions for charities and social care; growth should not rely solely on infrastructure investment.Liberal Democrat · Voted no_vote_recorded · Read full speech (1,694 words) →
OBR forecasts show GDP growth will slow and turn negative in years 4-5; Budget will shrink private sector, not grow it; challenges Government's claim growth is central mission.Conservative · Voted no · Read full speech (97 words) →
Private sector, not public investment, drives growth; Budget fails to help businesses; national insurance rise nets only £16bn after lost investment, with 75% burden falling on workers' wages.Conservative · Voted no · Read full speech (1,600 words) →
Last 14 years left public services fragile; Budget offers hope with NHS funding, affordable housing, homelessness support; temporary accommodation crisis affecting children requires urgent further action.Labour · Voted aye · Read full speech (912 words) →
Labour broke election promises on taxes, borrowing and inheritance tax; Budget leans into broken economic model with more borrowing and tax-spend rather than fixing structural problems (planning, migration, capital markets); A303 transport cuts regretted.Conservative · Voted no · Read full speech (2,223 words) →
Many good things in Budget but inheritance tax threatens family farms; threshold should be raised to £4-5m to protect farmers; every farmer in Northern Ireland will be affected.DUP · Voted no · Read full speech (173 words) →
Sources
Division dataUK Parliament Votes API
DebateHansard · Commons
Stance analysisAI analysis · Claude 4.x
LicenceOpen Parliament Licence v3.0