Votes · December 2025 · Budget resolution

Budget Resolution No. 28: Capital gains tax (employee-ownership trusts): how MPs voted on 2 December 2025

Division 373, 2 December 2025, 19:40. The Commons Votes API gives 362 Ayes, 164 Noes: majority 198 for the Ayes.

The question

27. Research and development overseas (relief for loss-making SMEs)

Resolved,

That (notwithstanding anything to the contrary in the practice of the House relating to the matters that may be included in Finance Bills) provision (including provision having retrospective effect) may be made amending section 1138A of the Corporation Tax Act 2009 so that subsection (1)(b) of that section applies only for the purposes of relief under Chapter 2 of Part 13 of that Act.

28. Capital gains tax (employee-ownership trusts)

Question put,

That—

(1) Section 236H of the Taxation of Chargeable Gains Act 1992 (disposals to employee-ownership trusts) is amended as follows.

(2) For subsection (2) substitute—

“(2) Where this section applies, section 17(1) (disposals and acquisitions treated as made at market value) does not apply to the disposal and, taking account of that disapplication—

(a) if a gain accrues, subsection (2A) applies, or

(b) if no gain accrues, subsection (3) applies.

(2A) Where this subsection applies—

(a) only 50% of the gain is a chargeable gain,

(b) the disposal is not to be regarded as a qualifying business disposal for the purposes of Chapter 3 of Part 5 (business asset disposal relief),

(c) the ordinary share capital disposed of is to be regarded, immediately before the disposal, as comprised wholly of excluded shares for the purposes of Chapter 5 of that Part (investors’ relief), and

(d) the acquisition by the trustees is to be treated for the purposes of this Act as made for the consideration for the disposal less an amount equal to so much of the gain as is not a chargeable gain as a result of paragraph (a).”

(3) In subsection (3), for “The”, in the first place it occurs, substitute “Where this subsection applies, the”.

(4) The amendments made by this Resolution have effect in relation to disposals made on or after 26 November 2025.

And it is declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.

As printed in Hansard before the division.

By party

Labour MPs cast 348 of the 361 named Aye votes; Conservative MPs 89 of the 163 named No votes.

Tellers: Deirdre Costigan (Labour, Ealing Southall) and Nesil Caliskan (Labour, Barking) (Ayes); Harriet Cross (Conservative, Gordon and Buchan) and Lincoln Jopp (Conservative, Spelthorne) (Noes).

How each MP voted

524 named · CSV

Sources

• Hansard: Budget Resolutions
• Commons division 373
• Commons Votes API: division eca19cf0f3714c83 15 October 2026
• Hansard API: division search ac37c3ae6cf70e5b 15 October 2026
• Hansard API: debate 105efc8b37f5036b 15 October 2026

SHA-256 of each copy read. Open Parliament Licence v3.0

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