§ Mr. Squire
asked the Chancellor of the Exchequer what was the estimated yield of capital gains tax on the disposal of ordinary shares and securities in 1978–79: and what would be the effect if the element of gain had been reduced by the appropriate movement in the retail price index over the same period.
§ Mr. Peter Rees
The estimated yield of capital gains tax in 1978–79 from ordinary shares and securities was about £160 million, and this would have been reduced by about £135 million if acquisition costs had been increased by the movement in the retail prices index while the shares were held. This estimate does not take account of behavioural changes and corporation tax on the capital gains of companies is not included.