§ Mr. Wrigglesworthasked the Chancellor of the Exchequer what has been the percentage increase in real terms of the threshold for exemption from capital gains tax since 1978–79; and if he will list the annual cost of changes to the exemption made since 1978–79.
§ Mr. Norman LamontIn real terms, the percentage increase between April 1978 and April 1987 is 219 per cent. The cost of each change to the exemption since 1978–79 can be found in the relevant "Financial Statement and Budget Report". The 1980–81 cost includes the effect of other changes whose cost cannot be distinguished.
§ Mr. Wrigglesworthasked the Chancellor of the Exchequer if he will list concessions made on capital gains tax and capital transfer tax since 1978–79; and what is his latest estimate of their cost.
§ Mr. Norman LamontThe yield of inheritance tax on capital transfers in 1987–88 is estimated to be about £350 million lower than if the 1978–79 capital transfer tax regime, with the threshold and rate band limits indexed in line with movements in retail prices, had remained in force. On the same basis, the yield of capital gains tax on gains realised by individuals and trusts in 1987–88 is estimated to be about £1,100 million lower than with the indexed 1978–79 regime. These estimates make no allowance for possible changes in the basis for these taxes which might result from changes in the structure and rates of tax.
Details of the changes to these taxes will be found in the annual Finance Acts.
§ Mr. Wrigglesworthasked the Chancellor of the Exchequer what is his latest estimate of the annual cost of indexation relief on capital gains tax.
§ Mr. Norman LamontAbout £600 million at the level of capital gains expected to be realised by individuals and trusts during 1987–88.
§ Mr. Wrigglesworthasked the Chancellor of the Exchequer what is his latest estimate of the annual cost of the abolition of capital transfer tax on lifetime gifts.
§ Mr. Norman LamontThe latest estimate is that published in the "Financial Statement and Budget Report 1986–87" (page 51, paragraph 40(a)).