§ Mr. Lawsonasked the Chancellor of the Exchequer what would be the cost in a full year of reducing the rate of capital gains tax to 25 per cent. and lowering the reduced rate introduced in Section 35(2) of the Finance Bill to 12½ per cent.
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§ Mr. Denzil Davies, pursuant to his reply [Official Report, 19th May 1978], gave the following information:
If the rate of capital gains tax were reduced to 25 per cent. and the reduced rate proposed in section 35(2) of the Finance Bill were lowered to 12½ per cent., the estimated additional cost would be £45 million in a full year.