Vol. 487 No. 3
169 Mr. Rabbitte asked the Minister for Finance if he will specify the number of expected beneficiaries by income levels in bands of £10,000 up to £250,000 in regard to the decision to halve the rate of capital gains tax; if he will break down the estimated £40 million cost to the Exchequer in terms of multinationals and indigenous companies; and if he will outline the likely gains to family trusts. [3735/98]
Information from income tax returns is not recorded in such a way that it would be possible to provide an estimate of the income levels of individuals liable to capital gains tax. To obtain the information it would be necessary to identify the cases and extract the information manually. Such an exercise could be carried out only at a disproportionate cost.
It has previously been stated that a 1 per cent reduction in the 40 per cent rate of CGT costs about £2 million. Consequently, on a static basis, reducing the standard rate of CGT to 20 per cent for all relevant disposals would cost of the order of £40 million. However, being a prudent accountant, I considered it necessary to take account of the likely increased buoyancy and the retention of the 40 per cent rate on certain disposals and, therefore, as I announced on budget day, the estimated full year cost of the reduction would be in the region of £19 million.
Statistics are not available which would enable the cost of the reduced rate to be apportioned between multinational and indigenous companies.
The total value of assets held in family trusts is not known. It is impossible therefore to outline the likely total gains to such trusts from the reduction to 20 per cent of the standard CGT rate.
