asked the Minister for Finance the amount of revenue accruing from Capital Gains Tax annually from 1980 to 1985; the cost to the Exchequer of abolishing Capital Gains Tax; and the cost to the Exchequer of reducing Capital Gains Tax to 25 per cent or 20 per cent.
Written Answers. - Capital Gains Tax.
260.
The net receipt of capital gains tax (i.e., excluding corporation tax on companies' capital gains) in each calendar year from 1980 to 1985 inclusive was as follows:
|
Calender Year |
Net receipt£ million |
|
1980 |
6.0 |
|
1981 |
6.2 |
|
1982 |
8.2 |
|
1983 |
8.7 |
|
1984 |
9.4 |
|
1985 |
10.2 |
The cost to the Exchequer of abolishing capital gains tax is estimated at £12 million in a full year.
The abolition of capital gains tax would entail the discontinuance of the charge to corporation tax on the capital gains of companies. Statistics are not available which would enable an estimate to be given of the loss of corporation tax which would result from such discontinuance.
The cost to the Exchequer of reducing the existing rates of capital gains tax to 25 per cent or 20 per cent is estimated at £5 million and £6.5 million respectively in respect of capital gains tax only. Statistics are not available which would enable an estimate of the loss of corporation tax arising from such reductions to be given.