Capital Gains Tax

Hywel Williams
To ask the Chancellor of the Exchequer (1) what estimate he has made of the effect on capital gains tax receipts of the introduction of the 50 per cent. income tax rate;

(2) if he will estimate the annual additional sum to accrue to the Exchequer from charging capital gains tax at the same rates as income tax.

Mr. Timms
The effect on capital gains tax receipts of the introduction of the 50 per cent. income tax rate was included in the modelling explained to the Treasury Select Committee but no separate estimate has been made.

The relevant transcript is available at pages 33 to 35 and 46 to 48 of:

http://www.publications.parliament.uk/pa/cm200809/cmselect/cmtreasy/438/438ii.pdf

The estimate requested could be provided only at disproportionate cost, due to the difficulties of assessing the large behavioural responses that would result from changes of this kind.