§ Dr. McDonaldasked the Chancellor of the Exchequer if he will publish in the Official Report a list of the changes made in capital transfer tax in each Finance Act since 1979, and indicate in each case the cost in terms of revenue foregone.
§ Mr. Moore[pursuant to his reply, 28 April 1986, c. 326]: The yield of tax in respect of transfers of capital in 1985–86 is estimated to be £70 million lower than it would have been if the 1978–79 regime had been in force, with scales indexed (in line with price movements) to 1985–86 levels. The table analyses this cost of £70 million to show the effect of the main changes introduced since 1979. The figures are therefore at 1985–86 levels and take the level and value of transfers in that year as given. It is not possible to estimate to what extent changes to the tax system may have affected levels of transfers. Each change has been costed on the assumption that all the changes preceding it in the list have already been made.
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Cost £ million Year of Change Scale Changes Abolition of rates above 60 per cent. 6 1984 Abolition of rates below 30 per cent. 231 1980
Cost £ million Year of Change Changes in other thresholds -207 Reliefs and Exemptions Increased business relief 1 1983 Increased agricultural relief 7 1981, 1983 Increased charity exemption 20 1980, 1983 Lifetime CTT Scale and other changes 10 1981, 1982, 1984 Other Extended interest free instalment eligibility 2 1981 Easing of CTT/CGT interactions 1980 Repeal of free loan provision 1981 Relaxation of rules for maintenance funds for historic houses 1980–82 Other changes 1980–85 Total 70