§ Sir C. Osborneasked the Chancellor of the Exchequer if he will exempt from capital gains tax transactions in the gilt-edged market, in order to reduce the National Debt interest and strengthen sterling.
§ Mr. Harold LeverNo.
§ Mr. Hector Hughesasked the Chancellor of the Exchequer how much he has collected from Capital Gains Tax during each of the last 10 years; what is the estimated number of investors involved; and if he will now encourage investors by seeking to abolish or reduce that tax.
§ Mr. Harold LeverAs the reply contains a number of figures, I will, with permission, circulate these in the OFFICIAL REPORT. As regards the last part of the hon. Member's Question, I regard the Capital Gains Tax as an essential feature of our taxation arrangements.
Following are the figures:
The yield of tax on capital gains, including tax on short-term gains under Schedule D Case VII and corporation tax on gains of companies, is estimated to be as follows:
Year Yield in£ million 1958–59 to 1962–63 … … Nil* 1963–64 … … 1½ 1964–65 … … 2 1965–66 … … 2½ 1966–67 … … 15½ 1967–68 … … 30† *Tax under Case VII of Schedule D was introduced by the Finance Act 1962 and no yield of tax on capital gains therefore accrued before 1963–64.
† The figure for this year is provisional.
The number of individuals liable to capital gains tax on gains realised during the year 1965–66 is estimated at between 150,000 and 200,000.