The Adam Smith Institute Capital Gains Tax Quiz

8 Questions | Total Attempts: 273

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Tax Quizzes & Trivia

The Coalition Government is proposing to raise the rate of Capital Gains Tax on non-business assets from 18% to as much as 50%. But how much do you know about Capital Gains Tax? Take our quick, eight-question quiz and find out!


Questions and Answers
  • 1. 
    What is the average Capital Gains Tax (CGT) rate in western (OECD) countries?
    • A. 

      30%

    • B. 

      20%

    • C. 

      15%

    • D. 

      25%

  • 2. 
    When Nigel Lawson raised the CGT rate from 30% to 35% in 1987 and then to 40% in 1988 what was the effect on revenues after 2 years ?
    • A. 

      They halved

    • B. 

      They doubled

    • C. 

      Up 20%

    • D. 

      Down 10%

  • 3. 
    What, according to recent US estimates, is the revenue-maximising rate of CGT?
    • A. 

      30%

    • B. 

      15%

    • C. 

      10%

    • D. 

      Same as income tax rates

  • 4. 
    What is the Capital Gains Tax (GCT) rate in Belgium?
    • A. 

      20%

    • B. 

      0%

    • C. 

      40%

    • D. 

      30%

  • 5. 
    Who said: “The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital….the ease of or difficulty experienced by new ventures in obtaining capital, and thereby the strength and potential for growth in the economy”?
    • A. 

      President Ronald Reagan

    • B. 

      President John F. Kennedy

    • C. 

      President George W. Bush

    • D. 

      President Bill Clinton

  • 6. 
    In 1978 the US CGT rate fell from 35% to 20%. What happened to revenues? They…
    • A. 

      Increased by 46%

    • B. 

      Decreased by 15%

    • C. 

      Increased by 20%

    • D. 

      Decreased by 5%

  • 7. 
    Between 1968 and 1972 US CGT rates increased by 10 percentage points. What happened to revenues? They…
    • A. 

      Increased by 18%

    • B. 

      Increased by 10%

    • C. 

      Stayed the same, despite the rise

    • D. 

      Fell by 21%

  • 8. 
    Who said “The point I made…was its major impact is to impede entrepreneurial activity and capital formation. While all taxes impede economic growth to one extent or another, the capital gains tax is at the far end of the scale. I argued that the appropriate capital gains tax rate was zero.”
    • A. 

      Professor Milton Friedman

    • B. 

      Stanley Fink, co-Treasurer of the Conservative Party

    • C. 

      John Redwood M.P.

    • D. 

      Former Federal Reserve Chairman Alan Greenspan

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