Stock market sends CGT receipts crashing
The 40% crash in equity markets has lead to capital gains tax receipts falling by almost half, according to figures provided by the Inland Revenue.
Its website revealed that the Treasury would receive just £1.6bn in CGT tax receipts for 2002/2003 compared with £3bn the previous year.
The dramatic drop was brought about by falling share prices as well as the increasing use of taper relief on capital gains, introduced to encourage investment in smaller companies.
Total revenue tax receipts also fell, dropping by £3bn from £154bn to £151bn.