§ Mr. Newtonasked the Chancellor of the Exchequer whether he will confirm that the yield of capital gains tax would be reduced from £330 million to £80 million by the introduction of an indexing measure.
§ Mr. Robert Sheldon:It is impossible to estimate the precise effect of an indexing measure on the future yield of capital gains tax, and so much would depend on the form it took and its effect on the future pattern of disposals. However, it is probable that a measure which took into account the rates of inflation of recent years would have a very substantial effect of the order mentioned on the present yield.