§ Mr. Peter Rees
asked the Chancellor of the Exchequer which countries of the Common Market impose a tax on the disposal of capital assets; and at what rates.
§ Mr. Nott
Of the member States of the European Community, apart from the United Kingdom, only Denmark has a comprehensive tax on disposals of capital assets. In Denmark an individual's first two krÖner of gains are exempt and the balance taxed at 50 per cent. The gains of companies are charged to corporation tax at the normal rate of 36 per cent. Capital gains are not taxed at all in the Republic of Ireland. In other member States the gains of companies are taxed in general in the same way as income—subject to various special reliefs—but there is no general tax on individuals' capital gains.