§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer, pursuant to his answers of 9 November 2000,Official Report, column 343W and 21 November 2000, Official Report, column 144W, concerning capital gains tax indexation, if he will make a statement on capital gains tax indexation for future years. [140547]
§ Dawn Primarolo[holding answer 28 November 2000]: An update of the answers will be available after the Budget forecast in spring 2001.
§ Mr. Matthew TaylorTo ask the Chancellor of the Exchequer what estimate he has made of the cost of capital gains taper relief to the Treasury for the five financial years from 2001–02. [140487]
§ Dawn Primarolo[holding answer 28 November 2000]: The costs of structural reliefs (including capital gains tax taper) for 1999–2000 and 2000–01 are given in the Tax Ready Reckoner and Tax Reliefs, which was published on 9 November 2000. These are £130 million and £310 million respectively. Estimates for future years are highly dependent on assumed growth in asset values.
The capital gains tax taper was introduced in Budget 1998 and amended in Budget 2000. The capital gains tax taper and associated changes in Budget 1998 were introduced on a broadly revenue neutral basis. The costs of the changes in Budget 2000 are given in the Financial Statement and Budget Report 2000.