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Capital Gains Tax

Volume 977: debated on Wednesday 30 January 1980

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asked the Chancellor of the Exchquer what estimate he has made of the yield from capital gains tax for 1979–80 and 1980–81 at current rates, assuming the tax is payable only on gains greater than the rise in the retail price index since the purchase of the asset or 1965 whichever is the later.

[pursuant to his reply, 28 January 1980]: If capital gains tax on disposals in 1979–80 and earlier years had been charged on any excess of net disposal value over acquisition cost, adjusted by reference to the subsequent increase in the retail price index, the yield in 1979–80 would have been between £50 million and £100 million. This estimate does not include corporation tax on companies' gains. It is not the practice to give forecasts for 1980–81 before the Budget.