§ Lord Monson
asked Her Majesty's Government:
How many extra staff have been employed by the Inland Revenue, and at what cost, in order to deal with the complex formulae for indexing capital gains which were introduced in the Finance Act 1982.
§ Lord Cockfield
The staffing effect of indexation cannot be readily distinguished from that of increasing the threshold for capital gains tax. The combined effect of the two measures is a staff increase of about 20 units at a cost of £250,000 in 1983–84 but thereafter staff savings will arise.