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Mr. Austin Mitchell
asked the Chancellor of the Exchequer what is the present rate of stamp duty on shares issued as a result of mergers and acquisitions; and if he will provide an estimate of the yield in 1986–87 of stamp duty at the rate of 1 per cent. on shares issued as a result of such mergers and acquisitions.
Mr. Ian Stewart
The present rate of capital duty is 1 per cent., but it does not apply if the consideration consists entirely, or almost entirely, of shares in the acquiring
| Reductions ( + )/Increases ( - ) in income lax compared with 1978–79 indexed regime | ||||||||||
| £ million | ||||||||||
| Range of total income in 1987–88 | Number units paying tax in 1987–88 (million) | 1979–80 | 1980–81 | 1981–82 | 1982–83 | 1983–84 | 1984–85 | 1985–86 | 1986–87 | 1987–88 |
| Under 5,000 | 3·2 | 70 | 100 | -290 | -240 | -20 | 110 | 230 | 270 | 340 |
| 5,000–10,000 | 7·6 | 640 | 710 | -280 | -170 | 390 | 760 | 1,090 | 1,380 | 1,940 |
| 10,000–15,000 | 5·3 | 960 | 1,000 | 190 | 270 | 730 | 1,150 | 1,450 | 1,810 | 2,530 |
| 15,000–20,000 | 2·7 | 760 | 790 | 290 | 340 | 630 | 910 | 1,090 | 1,370 | 1,930 |
company. I regret that the information requested on yield is not available centrally and could be obtained only at undue cost.