§ Mr. BayleyTo ask the Chancellor of the Exchequer if he will estimate the likely consequences to(a) income tax yield and (b) capital gains yield in a full year in the medium term and long term of the introduction of a maximum rate of capital gains tax of 25 per cent. due to (i) straightforward revenue loss and (ii) behavioural effects. [42289]
§ Mr. JackFor the capital gains tax effects of the specified measure, I refer the hon. Member to the reply given to the hon. Member for Edinburgh, South (Mr. Griffiths) on 27 October,Official Report, column 857. Behavioural effects would also be expected to lead to a small reduction in income tax yield, perhaps of the order of £50 million in a full year in the medium term.
It is not possible to produce reliable estimates for the long term.