§ 59. Mr. Michael Forsyth
asked the Chancellor of the Exchequer if he will estimate the first year cost in revenue to the Exchequer of abolishing capital gains tax and development land tax.
§ Mr. Moore
The lost revenue would be about £600 million and £80 million, respectively, at the level of gains chargeable in 1983–84. In practice the eventual cost to the Exchequer of abolishing a tax on capital gains could be significantly greater, arising from the inducement which would then be given to convert income into exempt capital.