§ Mr. ButterfillTo ask the Chancellor of the Exchequer what was the yield from capital gains tax in each of the last five years and what were the costs of collection in each year; what proportion of the yield and costs in each year derived from the taxation of investments in unquoted companies; and what estimates he has made of each figure for each of the next two years.
§ Mr. DorrellThe requested figures for capital gains tax yield and costs of collection are:
£ million Total Net Receipts1 Cost of Collection12 1989–90 1,854 34.3 1990–91 1,852 39.0 1991–92 1,140 43.3 1992–93 982 38.4 51993–94 711 4N/A 31994–95 900 N/A 31995–96 1,000 N/A 1The figures quoted exclude tax on gains made by companies included in corporation tax. Some of the costs associated with companies, however, cannot be separately identified and are therefore included in the costs figures for CGT rather than for corporation tax.
2Costs are based on total departmental expenditure. Manpower usage and costs of administration for 1989–90 onwards have been adjusted to reflect a new basis of costing therefore direct comparisons of this and later figures with earlier years may be misleading. More detail regarding this adjustment is given in the Board of Inland Revenue's Report for the year ending 31st March 1991.
3Summer Economic Forecast rounded to the nearest £100 million.
4The 1993–94 cost of collection is not yet available and will be given 567W in the Board of Inland Revenue's Report for the year ending 31st March 1994 to be published in September 1994.
5Provisional.
I regret that routine information on CGT yield and costs analysed by type of asset is not available. However, a recent survey of capital gains taxpayers with liabilities in 1990–91 showed that around one sixth of the disposals and one third of net chargeable gains arose from shares in unquoted companies. This survey was before changes were made to retirement relief and the introduction of reinvestment relief, which will affect the proportion of tax coming from investment in unquoted trading companies.
§ Mr. ButterfillTo ask the Chancellor of the Exchequer what estimate he has made of the annual loss of revenue from capital gains tax resulting from a change of tax residence by individual taxpayers.
§ Mr. DorrellThe information on which to base a reliable estimate is not available.