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Capital Gains Tax

Volume 888: debated on Wednesday 12 March 1975

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asked the Chancellor of the Exchequer if, in view of current difficulties experienced by vendors in selling their houses, he will introduce legislation specifically to extend from one year to two years the period for which a person's dwelling is exempt from capital gains tax liability on disposal.

In normal market conditions, and provided a realistic price is being asked, the 12-month rule gives the owner-occupier adequate time in which to sell his house. It is recognised, however, that at present, as a result of the depressed state of the housing market, some owner-occupiers have not been able to sell their house within this period. To meet this temporary situation it has been announced that the Board of Inland Revenue will in appropriate circumstances allow a modest extension of the 12-month period. I do not consider that legislation is required to meet a temporary situation arising out of the current exceptional market conditions. The board's practice should meet any special case such as I understand the hon. Member has in mind.

asked the Chancellor of the Exchequer if he is yet able to give his estimate of the extent to which the yield from capital gains tax in 1973–74 was derived from profits caused by inflation.

pursuant to his reply [Official Report, 10th March 1975, Vol. 888, c. 77], gave the following information:I regret that I cannot add to the reply given on 19th February to a related Question by the hon. Member for Value Added Tax Bournemouth, East (Mr. Cordle).