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Capital Gains Tax

Volume 468: debated on Monday 26 November 2007

To ask the Chancellor of the Exchequer if he will estimate the revenue implications of taxing capital gains at the same marginal rates as income tax from April 2008. (166351)

The revenue yield from taxing all capital gains at the income tax rates announced for 2008-09, without applying taper relief or indexation allowance, would be of the order of £3.5 billion a year by comparison with the current (2007-08) regime. This is a broad estimate that assumes continuation of the tax-free annual exempt amount and takes into account the likely taxpayer response to the change.