Capial Loss Relief (Hansard, 22 January 1990)

HC Deb 22 January 1990 vol 165 cc539-40W 539W

§ Mr. Hanley
To ask the Chancellor of the Exchequer if he has any plans to change the availability of capital loss relief for transactions in oil rights and oil assets.

§ Mr. Lilley
For disposals made on or after today, the Government intend two changes to stop unwarranted loss relief being available on certain oil assets. These are assets of an essentially wasting nature, whose value in 1982 was very high because of the high oil price at that date but where no actual loss compared with acquisition cost arises. First, unquoted shares deriving the larger part of their value from United Kingdom and United Kingdom continental shelf oil rights and assets will no longer be eligible for an election that rebasing to 1982 for capital gains tax purposes shall apply to all disposals. Secondly, in certain circumstances where oil assets, rights and
540W

§ Mr. Soley
To ask the Chancellor of the Exchequer what would be the additional average relief receivable by those people with incomes of(a) up to £5,000 a year, (b) between £5,000 and £10,000 a year, (c) between £10,000 and £15,000 a year, (d) between £15,000 and £20,000 a year, (e) between £20,000 and £25,000 a year, (f) between £25,000 and £30,000 a year, and (g) over £30,000 a year if the ceiling on mortgage interest tax relief were to be raised to (i) £35,000, (ii) £40,000, (iii) £45,000, and (iv) £50,000; and how many beneficiaries there would be in each income band, assuming (x) that relief would continue to be available at the higher marginal tax rate where applicable and (y) that relief was restricted to the standard, 25 per cent. rate of income tax.

§ Mr. Lilley
The information requested is given in the table. All estimates exclude behavioural effects which would be substantial for the higher ceilings.
unquoted shares are disposed of, indexation allowance will be calculated on the acquisition cost rather than the 1982 market value. The necessary legislation will be included in the 1990 Finance Bill. Further details are in a press release being issued by the Inland Revenue.