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Capital Gains Tax

Volume 474: debated on Thursday 24 April 2008

To ask the Chancellor of the Exchequer what estimates he has made of the likely receipts to the Exchequer from setting capital gains tax rates at the taxpayer’s marginal rate of tax in 2008-09. (200972)

A broad estimate of the eventual steady state impact, taking account of the likely taxpayer response to such a change, is additional receipts in the order of £2 billion a year by comparison with the current capital gains tax regime.

A reform of this kind would result in a large behavioural response and as such estimates are susceptible to a wide margin of error.