§ Mr. MarlowTo ask the Chancellor of the Exchequer what assessment he has made of the likely effect on the level of sales and marketability of non-corporate assets, excluding personal homes, of the increase in capital gains tax proposed in the Finance Bill.
§ Mr. Norman Lamont[holding answer 20 June 1988]: The changes to capital gains tax proposed in the Finance Bill represent a decrease in the CGT rate for basic rate tax payers, and an increase for those who pay tax at the higher rate. In addition, sales of assets are likely to be affected by the reduction in the annual exempt amount, by the rebasing of capital gains to March 1982, by the extension 477W of retirement relief and by the introduction of independent taxation of married couples from April 1990. The net effect of these changes to CGT on sales of assets, other than houses, by the non-corporate sector is estimated to be very small, and negligible in relation to the size of the markets. The marketability of these assets will be unaffected.