HC Deb 26 February 1976 vol 906 c334W
Mr. MacGregor

asked the Chancellor of the Exchequer what an asset worth £1,000 on 5th April 1965 would have to be worth today in money terms in order to have precisely the same value in real terms; and what capital gains tax would be paid on that asset if disposed of today.

Mr. Joel Barnett

An asset worth £1,000 in April 1965 would need to be worth £2,533 in January 1976 in order to preserve its real value measured by reference to the retail price index. The tax on a gain of £1,533 is £460 at the maximum rate, and £268 on the alternative basis of charge—assuming that the owner is liable only at the basic rate of income tax.

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