Written question asked by Lord Taylor of Goss Moor (Liberal Democrat) on Thursday, 23 January 2003, in the House of Commons. It was due for an answer on Thursday, 30 January 2003. It was answered by Baroness Primarolo (Labour) on Thursday, 30 January 2003 on behalf of the Treasury.

Treasury

Question: To ask Mr Chancellor of the Exchequer, if he will estimate the change in Government revenues from changing the capital gains tax regime simultaneously to abolish taper relief, reintroduce retirement relief and abolish the exemption of capital gains accrued but unrealised at death. - Inc figures and fact that a reliable estimate of the total yield is only available at disproportionate cost.

Answer: Matthew Taylor: To ask the Chancellor of the Exchequer if he will estimate the change in Government revenues from changing the capital gains tax regime simultaneously to abolish taper relief, reintroduce retirement relief and abolish the exemption of capital gains accrued but unrealised at death. [93717] Dawn Primarolo: The full year yield, including the effect of likely taxpayer reaction, from simultaneously abolishing taper relief and reintroducing retirement relief is estimated to be £200 million in 2002-03 and £400 million in 2003-04. The latest available estimate of the current cost of Capital Gains Tax relief for gains accrued but unrealised at death is £500 million for 2002-03. However this takes no account of taxpayers reaction to such a major change. The yield from abolition of this relief may be significantly different due to changes in taxpayers' behaviour. A reliable estimate of the total yield from all measures is only available at disproportionate cost.

Secondary information

Type: Written question
Reference: 398 c995-6W;398 c989-90W; 93717
Session: 2002-03
Subjects: Capital gains tax Tax allowances Taxation Tax yields Retirement allowance
Contains statistics: Yes
Link: View this Written question on www.publications.parliament.uk