Ms Anne Gunnell:

Historically, when CGT was at a lower rate of 20% the yield was much higher because there was more activity. It encouraged more transactions to happen. The feedback that we get from members, businesses and entrepreneurs and even in our engagement with other Government agencies in helping start-ups and businesses, is that the rate is high at 33% when compared with the OECD median of around 25%. It almost discourages businesses from selling their assets and thereby crystallising the tax. The experience is that CGT has had a behavioural impact, generally speaking. If the rate was at a more acceptable level, it would encourage more transactions to take place.