§ Mr. Chris SmithTo ask the Chancellor of the Exchequer what is the estimated cost of independent taxation in(a) 1990–91 and (b) 1991–92.
§ Mr. LilleyI refer the hon. Member to my reply to the hon. Member for Southwark and Bermondsey (Mr. Hughes) on 8 January at column566 for the effect on receipts in 1990–91. The corresponding reduction in income tax receipts in 1991–92 is estimated to he £1.3 billion. The estimate includes the effect on the composite rate of tax on bank and building society interest in 1991–92, but makes no allowance for possible behavioural effects. The reduction in capital gains tax receipts in 1991–92 is tentatively estimated to be about £50 million.