§ Mr. McCrindleasked the Chancellor of the Exchequer if he will estimate the effect on capital gains tax revenue if sales of ordinary shares which had been held for not less than 12 months are either index-linked or exempted from charge to capital gains tax as are gilts.
§ Mr. Peter Rees[pursuant to his reply, 29 February 1980]: If gains from disposals in 1979–80 and earlier years of ordinary shares held for not less than 12 months had been reduced by index-linking the acquisition cost by reference to the retail price index, or exempted entirely from charge to capital gains tax, the loss in revenue in 1979–80 would have been about £150 million and £180 million respectively. These estimates do not take account of behavioural changes and they
Corporation Tax(*) Tax on Self-Employment income(†) Current prices January 1980 prices (‡) Current prices January 1980 prices (‡) (£ million) (£ million) (£ million) (£ million) 1974–75 750 1,600 — — 1975–76 1,400 2,400 10 20 1976–77 1,250 1,900 25 40 1977–78 1,400 1,850 30 40 1978–79 1,350 1,650 55 65 1979–80 1,200 1,200 95 95 (*) Excluding public corporations. (†) Revised. (‡) The price index used is the general index of retail prices for all items.