HC Deb 30 January 2003 vol 398 cc989-90W
Matthew Taylor

To ask the Chancellor of the Exchequer if he will estimate the change in Government revenues from changing the capital gains tax regime simultaneously to abolish taper relief, reintroduce retirement relief and abolish the exemption of capital gains accrued but unrealised at death. [93717]

Dawn Primarolo

The full year yield, including the effect of likely taxpayer reaction, from simultaneously abolishing taper relief and reintroducing retirement relief is estimated to be £200 million in 2002–03 and £400 million in 2003–04.

The latest available estimate of the current cost of Capital Gains Tax relief for gains accrued but unrealised at death is £500 million for 2002–03. However this takes no account of taxpayers reaction to such a major change. The yield from abolition of this relief may be significantly different due to changes in taxpayers' behaviour.

A reliable estimate of the total yield from all measures is only available at disproportionate cost.