HC Deb 29 November 1993 vol 233 cc333-4W
Mr. Mandelson

To ask the Chancellor of the Exchequer if he will estimate the number of(a) individuals and (b) trusts that have gains falling below the capital gains tax annual exempt amount for the latest year available.

Mr. Dorrell

I regret that precise estimates are not possible, but the number of individuals and trusts with total net chargeable gains below the capital gains tax annual exempt amount and above £1,000 in 1992–93 could be in the order of half a million.

Mr. Mandelson

To ask the Chancellor of the Exchequer if he will give for 1994–95 or the latest year available an estimate of the yield and the number of taxpayers affected by restricting the capital gains tax allowance to relief at the(a) 25p rate and (b) 20p rate.

Mr. Dorrell

Under current rules, net chargeable gains below the capital gains tax annual exempt amount are totally exempt from tax. The effects of restricting this relief at the 25 per cent. and 20 per cent. rates are given in the table based on 1992–93 liabilities. The estimates assume the restriction would affect only individuals with gains above the annual exempt amount and do not allow for any consequential change in their behaviour.

Number of taxpayers affected Capital gains tax yield (£ million)
Restricting the relief to
(a) 25 per cent. rate 50,000 40
(b) 20 per cent. rate 75,000 60