§ Mr. MandelsonTo ask the Chancellor of the Exchequer what he estimates to be the total cost in 1994–95 of relief from capital gains tax for(a) retirement relief, (b) holdover relief for gifts, (c) relief for trading losses against capital gains, (d) indexation allowance and rebasing to March 1982, (e) exemption of first £5,800 of gains of individuals and first £2,900 of gains of trustees and (f) gains accrued but unrealised at death.
§ Mr. Dorrell[holding answer 28 April 1994]: Provisional estimates for the costs of the reliefs, allowances and exemptions for 1994–95 are given in the table.
654W
Cost for 1994–95 (£ million) a. Retirement relief 65 b. Holdover relief for gifts 50 c. Relief for trading losses against capital gains 85
Cost for 1994–95 (£ million) d. Indexation allowance and rebasing to March 1982 (individuals and trusts only)1 1,100 e. Exemption of first £5,800 of gains on individuals and first £2,900 of gains on trustees 450 f. Gains accrued but unrealised at death 500 1 Company figures are not available. These estimates are the costs of the present reliefs and do not represent the yield from abolition of the relief: consequential behavioural effects could substantially alter the yield. These figures are all tentative and subject to a wide margin of error. All figures relate to individuals and trusts only and exclude gains made by companies who pay corporation tax on their gains.