§ Mr. Hordernasked the Chancellor of the Exchequer what would be the cost to the Revenue of (a) abolishing capital gains tax on the disposal of assets held 507W for more than three years and (b) abolishing capital gains tax on gains of less than £10,000.
§ Mr. Peter ReesThe full year cost in 1979–80 would be for (a) about £300 million and for (b) about £75 million assuming that gains of £10,000 or more were charged in full at 30 per cent. Those estimates do not take account of behavioural changes and they do not include corporation tax on the capital gains of companies.
§ Mr. Hordernasked the Chancellor of the Exchequer what would be the loss to the Revenue if no capital gains tax were chargeable when capital transfer tax was paid.
§ Mr. Peter ReesThe present yield of capital gains tax on lifetime transfers in respect of which capital transfer tax is also paid is estimated to be about £5 million, but I regret it is not possible to estimate the cost to the Revenue of a provision as suggested by my hon.
CAPITAL GAINS TAX RECEIPTS Amount (£ million) Amount at 1970–71 prices (£ million) As a proportion of Inland Revenue receipts 1970–71 … … 138.9 138.9 1.7 1971–72 … … 155.1 142.0 1.7 1972–73 … … 208.5 178.2 2.3 1973–74 … … 323.6 250.4 3.0 1974–75 … … 381.6 250.4 2.7 1975–76 … … 386.7 203.6 2.1 1976–77 … … 323.4 147.7 1.6 1977–78 … … 339.9 136.2 1.6 1978–79 … … 352.9 130.6 1.5 1979–80 (estimated) … 390 123.5 1.5 These figures do not include corporation tax on chargeable gains