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Capital Gains Tax

Volume 977: debated on Monday 28 January 1980

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asked the Chancellor of the Exchequer what would be the cost to the Revenue of (a) abolishing capital gains tax on the disposal of assets held for more than three years and (b) abolishing capital gains tax on gains of less than £10,000.

The full year cost in 1979–80 would be for (a) about £300 million and for (b) about £75 million assuming that gains of £10,000 or more were charged in full at 30 per cent. Those estimates do not take account of behavioural changes and they do not include corporation tax on the capital gains of companies.

asked the Chancellor of the Exchequer what would be the loss to the Revenue if no capital gains tax were chargeable when capital transfer tax was paid.

The present yield of capital gains tax on lifetime transfers in respect of which capital transfer tax is also paid is estimated to be about £5 million, but I regret it is not possible to estimate the cost to the Revenue of a provision as suggested by my hon.

CAPITAL GAINS TAX RECEIPTS
Amount million)Amount at 1970–71 pricesmillion)As a proportion of Inland Revenue receipts
1970–71138·9138·91·7
1971–72155·1142·01·7
1972–73208·5178·22·3
1973–74323·6250·43·0
1974–75381·6250·42·7
1975–76386·7203·62·1
1976–77323·4147·71·6
1977–78339·9136·21·6
1978–79352·9130·61·5
1979–80 (estimated)390123·51·5
These figures do not include corporation tax on chargeable gains