To ask the Chancellor of the Exchequer if he will estimate the revenue implications of abolishing capital gains tax taper relief and reducing the annual exempt amount for individual and trustees to (a) £500, (b) £1,000 and (c) £2,500 in each year from 2004-05 to 2009-10 while simultaneously reintroducing indexation linked to (i) the consumer price index and (ii) the retail price index; and if he will make a statement. (76887)

Broad estimates of the yield of abolishing capital gains tax taper relief and reducing the annual exempt amount for individual and trustees to (a) £500, (b) £1,000 and (c) £2,500 for the 2006-07 while simultaneously reintroducing indexation linked to either the consumer or retail price index are available in the following table.

The figures are consistent with the assumptions made in Budget 2006 on future asset prices, and take into account the likely taxpayer behavioural responses to the tax change. The Annual Exempt Amount for Trusts is assumed to be half that of individuals. Figures for other years are not available.