164 Mr. Cox asked the Minister for Finance the cost in gross and net terms to index allowances from 6 April 1994 to 31 December 1994, and in a full year, for all capital taxes and probate tax; and if he will give a breakdown by tax.

Following is the information requested to the extent that it is available:

Capital Gains Tax

In broad terms capital gains tax is already fully adjusted for inflation. Where the expenditure incurred on acquiring or enhancing an asset is incurred more than 12 months before the date of its disposal, the amount of that expenditure is normally adjusted to take account of inflation. The adjustment is made by multiplying the relevant item of allowable expenditure by a factor which reflects the change in the All Items Consumer Price Index during the period since the asset was acquired.