§ Mr. HanleyTo ask the Chancellor of the Exchequer what would have been the revenue gain of a capital gains tax threshold of £2,500 in the last financial year.
§ Mr. LilleyIt is tentatively estimated that the full year yield of a reduction in the 1989–90 capital gains tax annual exempt amount to £2,500 would be of the order of £100 million. This estimate allows for some change in taxpayers' behaviour in response to the reduced annual exempt amount, but does not allow for possible short-term effects. No allowance has been made for any change in the treatment of capital gains of companies which are taxed within corporation tax.