Capital Gains (Tax)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 29th November 1960.

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Photo of Mr Jo Grimond Mr Jo Grimond , Orkney and Shetland 12:00 am, 29th November 1960

asked the Chancellor of the Exchequer if he will give an estimate of the cost of administration and the yield, over any recent period, of a capital gains tax on either stocks and shares or land values, or both, at any given rate.

Photo of Mr Selwyn Lloyd Mr Selwyn Lloyd , Wirral

Such an exercise would involve so many assumptions as to the date of introduction, scope and other features of the hypothetical tax, and therefore would involve so many complicated calculations that I am not prepared to undertake it.

Photo of Mr Jo Grimond Mr Jo Grimond , Orkney and Shetland

Are we to understand that no study of possible sources of taxation such as the taxing of land values is being made? Many people are extremely concerned that such a heavy weight of taxation falls through Income Tax on earnings and that other forms of gain apparently go entirely untaxed. Is it not time that there was at least a study made of these matters?

Photo of Mr Selwyn Lloyd Mr Selwyn Lloyd , Wirral

There have been studies of the capital gains tax, and evidence was given before the Radcliffe Commission on the Taxation of Profits and Income which, according to the calculations, indicated that the amount to be gained from a tax on capital gains was not very much.