§ 29. Mr. Biffenasked the Chancellor of the Exchequer what is the current estimated yield of the long and short-term capital gains taxes; and what estimate he has made of the effect on these figures of raising the exemption limit from £50 to £250, £500 and £1,000, respectively.
§ Mr. DiamondThe Budget estimates included £136 million for capital gains tax and £6 million for tax on short-term gains. If the higher exemption limits cited had applied retrospectively to gains realised in 1968–69 the full year cost would have been £10 million, £20 million and £40 million respectively.
§ Mr. BiffenIs the right hon. Gentleman aware that this is a singularly unjust tax and that in the circumstances of current inflation it becomes nothing more or less than a capital levy? Will he, therefore, bear in mind the desirability of adopting some of the reforms suggested in the Question?
§ Mr. DiamondNo, Sir. I take the view that our social system had a glaring gap in it before we had capital gains tax. However, I will give thought to what the hon. Gentleman said in the second part of his supplementary question.