§ 9. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer if he will give instructions to the Inland Revenue to relieve the taxpayer from the obligation of calculating the historical cost of investments in cases where he is claiming a capital loss on the sale of such investments.
§ Mr. DiamondThe Revenue does not insist on a precise calculation of the cost 806 of investments acquired before 6th April, 1965, where it clearly exceeded the value on that date.
§ Mr. Bruce-GardyneCan the Chief Secretary confirm that, where a taxpayer claims an allowable loss, the onus is on the Inland Revenue to say that he is not entitled to it because of the historical cost of the shares?
§ Mr. DiamondI could not reply in precisely those terms. Where the gain can be shown to be less in the period from Budget day than from the date of original acquisition, the gain is limited. Similarly, where the loss is greater, the loss is limited. It is only in those cases where the taxpayer wishes to establish the historical cost that the question arises.