§ Mr. LawsTo ask the Chancellor of the Exchequer (1) what his latest estimate is of the revenue cost of the changes to capital gains tax introduced in the March 2000 Budget for each year from 2000–01 to 2005–06; what assessment has been made of the economic benefits of the reform; and if he will make a statement; [130129]
(2) what his latest estimate is of the cost of changing the capital gains tax business assets taper relief in the November 2001 Pre-Budget Report; and if he will make a statement; [130132]
(3) what his estimate is of the revenue yield from abolishing capital gains tax taper relief for each year from 2000–01 to 2005–06; and if he will make a statement. [130139]
§ Dawn PrimaroloThe estimated yield, on an accrual basis, from abolishing Capital Gains Tax Taper Relief, as currently operating, for 2000–01 and 2001–02 are published in Table A3.1 in the Budget Report 2003. The figures take into account some of the likely effects on yield from changes in taxpayers' behaviour. Figures for later years are not available.
The estimated cost, on an accrual basis, of changes to the Capital Gains Tax Taper Relief announced in Budget 2000 for each year from 2000–01 to 2002–03 are published in Table A. 13 in the Budget Report 2000.
The estimated cost, on an accrual basis, of changes to the Capital Gains Tax Taper Relief outlined in Pre-Budget Report 2001 for each year from 2002–03 to 2004–05 are published in Table A.2 in Budget 2002 report.
The estimates of cost of Budget 2000 and Pre-Budget Report 2001 changes take into account most of the likely effects on yield from changes in taxpayers' behaviour. Figures for later years are not available.
We intend to evaluate taper relief once the system has had time for its effects to become measurable.