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Capital Transfer Tax

Volume 886: debated on Thursday 20 February 1975

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asked the Chancellor of the Exchequer what quantitative estimate he has made of the effect of the Government's capital transfer tax proposals on agricultural output.

I am satisfied that when account is taken of the special relief for working farmers, the revised scale of rates of tax for lifetime gifts and the general exemptions under the tax, it will not have a significant effect on agricultural output.

asked the Chancellor of the Exchequer what is the minimum level of gift below which he intends that details need not be supplied on returns to the Inland Revenue.

asked the Chancellor of the Exchequer why lawyers but not professional accountants are to be exempted from disclosing to the Revenue advice given to their clients regarding capital transfer tax.

asked the Chancellor of the Exchequer what is the proposed period between the making of a gift and (a) the due date for payment of capital transfer tax and (b) the making of a return to the Revenue in respect of the gift.

asked the Chancellor of the Exchequer why he has felt it necessary to set lower limits for gifts in consideration of marriage in respect of capital transfer tax than those in force under the estate duty legislation.

asked the Chancellor of the Exchequer whether a person who receives funds back from a settlement, which was originally created from his own funds, will be liable to pay capital transfer tax on the amount paid back to him; and whether this will be so even if the settlement was created because of his illness or disability.

, pursuant to his reply [Official Report, 17th February 1975; Vol. 886, c. 311], circulated the following information:The Finance Bill provides that there will be no charge to capital transfer tax if property in which an interest in possession subsists reverts to the settlor, unless he has acquired a reversionary interest in the property for money or money's worth. Where property held on discretionary trusts reverts to the settlor a charge will arise under the provisions of the Bill on the distribution of capital to the settler, but in the course of debates in the Standing Committee on the Finance Bill the Government have undertaken to consider the question of allowing exemption where the property reverts to the settlor.