§ Mr. DarlingTo ask the Chancellor of the Exchequer what estimate he has made of the loss of revenue to the Exchequer resulting from exploitation of the capital gains tax loophole identified in clause 43 of the Finance Bill 1995; and; how much revenue annually he estimates would accrue following its closure.
§ Sir George Young[holding answer 3 February 1995]: The known level of avoidance up to the closure of the loophole identified in clause 43 of the Finance Bill 1995 was low and the revenue loss is estimated to be negligible. However if not closed, this loophole would result in the loss of a significant amount of tax as the level of avoidance is expected to escalate once the loophole becomes well known. This loss could amount to many tens of millions of pounds.