§ Mr. Meacherasked the Chancellor of the Exchequer (1) what he estimates would be the yield over the next year, on the basis that the current rate of increase in house prices continued, from a capital gains tax of, respectively, 30 per cent. and 50 per cent. imposed on the excess of the sale price of houses over £7,000 or on the excess over the previous sale price, whichever is the higher; and on this basis, what he estimates to be the yield from such a tax in each of the following four years;
(2) what he estimates would be the yield over each of the next five years, on the basis that the current rate of increase in house prices continued, from a capital gains tax of, respectively, 30 per cent. and 50 per cent. imposed on the excess of the sale price of houses over £7,000 or the excess over the previous sale price, whichever is the higher, in the first year, where this base figure was later raised each successive year by the rate of inflation of house prices over the previous year;
(3) what he estimates would be the present annual yield of a capital gains tax imposed at the present time on the increase in market value of those houses now selling for over £7,000, taking their
26W
Capital gains tax on gains of individuals (assessments for 1969–70) Corporation tax on gains of companies (accounting periods ending in 1968–69) Type of Asset Tax (£m.) Percentage Tax (£m.) Percentage Company shares and debentures … … 54 86 91 91 Government and municipal securities … … 2 2 1 1 Land and property … … 5 8 6 6 Other assets, or not recorded … … 2 4 2 2 63 100 100 100 market value at 1st January 1970 as the base, on the basis that such increase were taxed at the respective rates of 30 per cent. and 50 per cent.;
(4) what he estimates would be the yield over each of the next five years, on the basis that the current rate of increase in house prices continued, from a capital gains tax imposed on the excess of the sale price of houses over £7,000 or the excess over the previous sale price, whichever is the higher, in the first year, raised by £1,500 in each successive four years, on the basis that the tax rate were fixed at 30 per cent. of the excess up to £10,000 and 50 per cent. of the excess thereafter.
§ Mr. NottIt is not possible to provide estimates for the yields of capital gains tax which would result from these proposals.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer if, for the most recent year for which the information is available, he will give an analysis of the type of assets on which capital gains tax has been paid, with the amount and percentage of capital gains revenue in each category, distinguishing between companies and individuals.
§ Mr. NottCapital gains tax is levied on the realised gains of individuals only; those of companies are charged to corporation tax. The following table gives an approximate analysis for the latest years available of the amounts of each tax assessed up to 31st March 1971 on capital gains of individuals and of companies by main component of the gain charged.