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Taxation: Property

Volume 481: debated on Monday 20 October 2008

To ask the Chancellor of the Exchequer (1) how many capital gains calculations were apportioned under principal private residence rules in each of the last five years; (227598)

(2) how many principal private residence elections have been made in each of the last five years; and how many such elections represent individuals making (a) two, (b) three and (c) four or more elections;

(3) what estimate has been made of the cost to the Exchequer in terms of tax revenue foregone of allowing individuals to elect their principal private residence in each of the last five years;

(4) what estimate he has made of the effect on capital gains tax revenues of trends in the sales of residential properties following the reforms to capital gains tax announced in the October 2007 Pre-Budget report.

The information requested is not available.

It is not possible to determine from HM Revenue and Customs sources the number of principal private residence relief elections made nor the cost to the Exchequer of such elections. The latest estimates for the cost of principal private residence relief excluding taxpayer behaviour are published in table 7 of the Tax Ready Reckoner on the HM Treasury website at:

http://www.hm-treasury.gov.uk/d/pbr_csr07_tax readyreckoner.pdf

Capital gains tax paid depends on the taxpayer’s total gains, losses, and reliefs claimed so it is not possible to attribute amounts of tax to separate disposals. The latest available figures for the number of disposals, disposal value and gains made on assets disposed of in 2004-05 by type of asset, including residential property, are available in National Statistics table 14.4 on the HM Revenue and Customs website at:

http://www.hmrc.gov.uk/stats/capital_gains/table14-4.pdf

Equivalent data for 2008-09, following the reforms to capital gains tax announced in the October 2007 pre-Budget report, will not be available until at least October 2011.

To ask the Chancellor of the Exchequer what estimate he has made of the amount of revenue foregone each year from not taxing capital gains by non-UK residents in relation to UK real estate in each of the last five years. (227605)

No estimate of the revenue foregone from not taxing capital gains on UK real estate owned by non-UK residents is available.