§ The Earl of Kimberleyasked Her Majesty's Government:
Whether they will give an estimate of the amount of stamp duty paid on the transfer of stocks and shares for the year ending 5th April 1983 and the cost of collecting this revenue; and whether they will investigate whether the removal of such stamp duty would not significantly increase the flow of capital to promote economic growth; and whether, having taken such action, the resultant loss of revenue from stamp duty would not be more than compensated for by increased direct tax revenue from Stock Exchange operators and VAT levied on commissions.
§ The Secretary of State for Trade (Lord Cockfield)The yield from stamp duty on the transfer of stocks and shares for the year ending 5 April 1983 is expected to be about £300 million. The overall248WA cost/yield ratio for collecting stamp duty is about 1.01 per cent for 1981/82: no separate figure in respect of stocks and shares is available. Although the abolition of stamp duty on the transfer of stocks and shares would lead to some increase in turnover, and might thereby encourage the raising of new equity capital, it is not possible to make any reliable estimate of the compensatory revenue yield.