§ Matthew TaylorTo ask the Chancellor of the Exchequer what the expected cost is for the next five fiscal years of the changes to the capital gains tax system since 1997; what studies the Treasury has(a) undertaken, (b) reviewed and (c) commissioned on the efficacy of the changes to the capital gains tax system since 1997; and if he will make a statement. [4402]
§ Dawn PrimaroloThe available information on the expected cost/yield of capital gains measures introduced since 1997 is published in each "Financial Statement and Budget Report". Further information on the difference in yield between the planned regime and that which would have applied if no changes had been made since 1997 could be compiled only at disproportionate cost.
The Government consulted widely on the effectiveness of the reformed capital gains tax system in the light of developing market conditions before making the improvements to taper relief that were implemented in the Finance Acts 2000 and 2001.
In the June 2001 "Enterprise for All" announcement, the Government said that they would consider whether, during the lifetime of this Parliament, changes to the regime for non-business assets are necessary in order to improve incentives for investment and help businesses attract finance. And they will also consult on whether 23W there are worthwhile and good value for money options to simplify capital gains tax within the existing policy framework.