§ Mr. Sean HughesTo ask the Chancellor of the Exchequer what amounts were collected in capital gains tax on the sale of residential property in each of the last five years; and what numbers of properties were involved.
§ Mr. Norman LamontI regret that no information is available centrally about sales by companies. For 377W individuals and trusts, limited information is available about assessments relating to sales in 1985–86. The capital gains tax on sales of properties identified as residential was about £100 million payable by about 40,000 taxpayers. In addition tax may have been paid on other residential property not identified as such.
§ Mr. Sean HughesTo ask the Chancellor of the Exchequer what audit safeguards are currently in place to ensure that all payments of capital gains due on sales of residential property are properly made.
§ Mr. Norman LamontMost such sales are made by owner occupiers and are exempt from tax. Sales by developers and investors are picked up through the ordinary process of examining taxpayers' returns and business accounts, a proportion of which are checked against information supplied by third parties.