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Small Businesses

Volume 886: debated on Thursday 13 February 1975

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asked the Chancellor of the Exchequer what will be the estimated cost to the revenue in a full year of the concession on capital transfer tax for the benefit of small businesses.

My hon. Friend is no doubt referring to the proposed new scale of rates of capital transfer tax on lifetime transfers. The effect on the revenue depends on the extent to which the relief encourages the making of transfers in lifetime rather than on death. If there are many more lifetime transfers the tax could show a higher yield in the early years. In the longer time the yield of the tax must be reduced, but it is not possible to estimate by how much.