§ 37. Mr. Grantasked the Chancellor of the Exchequer if he will estimate the cost in a full year of excluding the first £500 of any capital gain from capital gains tax.
§ The Chancellor of the Exchequer (Mr. James Callaghan)It is not possible to make an estimate. The cost would depend on the extent to which taxpayers took advantage of the exemption by spreading their realisations of capital gains.
§ Mr. GrantHas the Chancellor studied the views of the London Stock Exchange on this issue? Does he realise that a concession of this nature would probably do more than anything else to encourage the flow of investments and savings which he says he so much desires?
§ Mr. CallaghanEverything that comes from the Stock Exchange demands my constant and earnest attention. I can promise the hon. Member that I will consider its memorandum with very great care. As to the flow of savings, the hon. Member will be happy to know that it is running at a very high level again this year.