§ Mr. David Shaw
To ask the Chancellor of the Exchequer what has been the effect on revenues of raising the top rate of capital gains tax to 40 per cent.
§ Mr. Lilley
[holding answer 19 December 1989]: The 1988-89 FSBR estimated the yield from aligning capital gains tax and income tax at £70 million in 1988-89 and £65 million in 1989-90. However, tax on gains realised in 1988-89, the first year for which capital gains were charged at income tax rates, became payable from 1 December 1989. It will therefore be some time before sufficiently complete information about 1988-89 liabilities is available.