asked the Chancellor of the Exchequer what representations he has received from the National Society for the Prevention of Cruelty to Children in regard to the provisions of the capital transfer tax; and if he will make a statement.
I have been made aware of the views of the National Society
| NO PREVIOUS GIFTS | |||
| Value of asset transferred (after all tax) | Combined value of asset and tax paid by donor | Tax payable | Tax payable as proportion of asset transferred |
| £ | £ | £ | Per cent |
| 20,000 | 20,270 | 270 | 1·35 |
| 30,000 | 31,286 | 1,286 | 4·29 |
| 40,000 | 42,794 | 2,794 | 6·99 |
| 50,000 | 54,697 | 4,697 | 9·39 |
| 60,000 | 67,031 | 7,031 | 11·72 |
| 70,000 | 79,531 | 9,531 | 13·62 |
| 80,000 | 92,419 | 12,419 | 15·52 |
| 90,000 | 105,690 | 15,690 | 17·43 |
| 100,000 | 119,483 | 19,483 | 19·48 |
| 125,000 | 158,913 | 33,913 | 27·13 |
| 150,000 | 202,750 | 52,750 | 35·17 |
| 175,000 | 253,056 | 78,056 | 44·60 |
| 200,000 | 309,688 | 109,688 | 54·84 |
| 225,000 | 372,188 | 147,188 | 65·42 |
| 250,000 | 434,688 | 184,688 | 73·88 |
| 275,000 | 497,188 | 222,188 | 80·80 |
| 300,000 | 568,214 | 268,214 | 89·40 |
| 350,000 | 711,071 | 361,071 | 103·16 |
| 400,000 | 853,928 | 453,928 | 113·48 |
| 450,000 | 996,785 | 546,785 | 121·51 |
| 500,000 | 1,162,916 | 662,916 | 132·58 |
| 550,000 | 1,329,582 | 779,582 | 141·74 |
| 600,000 | 1,496,249 | 896,249 | 149·37 |
| 650,000 | 1,662,915 | 1,012,915 | 155·83 |
| 700,000 | 1,829,582 | 1,129,582 | 161·37 |
| 750,000 | 1,996,248 | 1,246,248 | 166·17 |
| 800,000 | 2,195,500 | 1,395,500 | 174·44 |
for the Prevention of Cruelty to Children about the effect of the capital transfer tax. Those views were expressed before the statement I made in the Standing Committee on the Finance Bill—[5th February 1975; c. 914–15]—on the treatment of gifts to charities.
asked the Chancellor of the Exchequer whether he will publish in the Official Report the text of the Financial Secretary's letters to the hon. Member for Blaby which the Financial Secretary promised on 14th February to send to the hon. Member.
Yes. The text is as follows:
"I promised on 14th February to send you some further information for which you had asked in connection with the rates of capital transfer tax. I now attach this."
asked the Chancellor of the Exchequer whether he will provide revised versions of the tables given in the Financial Secretary's Written Answer of 27th January to the hon. Member for St. Marylebone (Mr. Baker) in the light of Her Majesty's Government's new proposals for a reduced scale of rates of capital transfer tax on lifetime gifts.
pursuant to his reply [Official Report, 10th February 1975; Vol. 886, c. 8], gave thte following information:The revised tables are given below.
| NO PREVIOUS GIFTS-continued | |||
Value of asset transferred (after all tax) | Combined value of asset and tax paid by donor
| Tax payable
| Tax payable as proportion of asset transferred
|
| 850,000 | 2,395,500 | 1,545,500 | 181·82 |
| 900,000 | 2,595,500 | 1,695,500 | 188·39 |
| 950,000 | 2,795,500 | 1,845,500 | 194·26 |
| 1,000,000 | 2,995,500 | 1,995,500 | 199·55 |
| PREVIOUS GROSS GIFTS TOTALLING £15,000 | |||
| 20,000 | 22,000 | 2,000 | 10·00 |
| 30,000 | 33,676 | 3,676 | 12·25 |
| 40,000 | 45,781 | 5,781 | 14·45 |
| 50,000 | 58,281 | 8,281 | 16·56 |
| 60,000 | 70,968 | 10,968 | 18·28 |
| 70,000 | 83,871 | 13,871 | 19·82 |
| 80,000 | 97,586 | 17,586 | 21·98 |
| 90,000 | 112,115 | 22,115 | 24·57 |
| 100,000 | 127,500 | 27,500 | 27·50 |
| 125,000 | 170,000 | 45,000 | 36·00 |
| 150,000 | 217,750 | 67,750 | 45·17 |
| 175,000 | 271,389 | 96,389 | 55·08 |
| 200,000 | 332,188 | 132,188 | 66·09 |
| 225,000 | 394,688 | 169,688 | 75·42 |
| 250,000 | 457,188 | 207,188 | 82·88 |
| 275,000 | 524,643 | 249,643 | 90·78 |
| 300,000 | 596,071 | 296,071 | 98·69 |
| 350,000 | 738,928 | 388,928 | 111·12 |
| 400,000 | 881,785 | 481,785 | 120·45 |
| 450,000 | 1,031,250 | 581,250 | 129·17 |
| 500,000 | 1,197,916 | 697,916 | 139·58 |
| 550,000 | 1,364,582 | 814,582 | 148·11 |
| 600,000 | 1,531,249 | 931,249 | 155·21 |
| 650,000 | 1,697,915 | 1,047,915 | 161·22 |
| 700,000 | 1,864,582 | 1,164,582 | 166·37 |
| 750,000 | 2,040,500 | 1,290,500 | 172·07 |
| 800,000 | 2,240,500 | 1,440,500 | 180·06 |
| 850,000 | 2,440,500 | 1,590,500 | 187·12 |
| 900,000 | 2,640,500 | 1,740,500 | 193·39 |
| 950,000 | 2,840,500 | 1,890,500 | 199·00 |
| 1,000,000 | 3,040,500 | 2,040,500 | 204·05 |
| PREVIOUS GROSS GIFTS TOTALLING £50,000 | |||
| £ | £ | £ | Per cent
|
| 20,000 | 24,688 | 4,688 | 23·44 |
| 30,000 | 37,419 | 7,419 | 24·73 |
| 40,000 | 50,345 | 10,345 | 25·86 |
| 50,000 | 64,138 | 14,138 | 28·28 |
| 60,000 | 78,846 | 18,846 | 31·41 |
| 70,000 | 94,231 | 24,231 | 34·62 |
| 80,000 | 110,870 | 30,870 | 38·59 |
| 90,000 | 128,261 | 38,261 | 42·51 |
| 100,000 | 145,652 | 45,652 | 45·65 |
| 125,000 | 195,000 | 70,000 | 56·00 |
| 150,000 | 250,000 | 100,000 | 66·67 |
| 175,000 | 312,500 | 137,500 | 78·57 |
| 200,000 | 375,000 | 175,000 | 87·50 |
| 225,000 | 437,500 | 212,500 | 94·44 |
| 250,000 | 507,143 | 257,143 | 102·86 |
| 275,000 | 578,571 | 303,571 | 110·39 |
| 300,000 | 650,000 | 350,000 | 116·67 |
| 350,000 | 792,857 | 442,857 | 126·53 |
| 400,000 | 935,714 | 535,714 | 133·93 |
| 450,000 | 1,099,999 | 649,999 | 144·44 |
| 500,000 | 1,266,666 | 766,666 | 153·33 |
| 550,000 | 1,433,332 | 883,332 | 160·61 |
| 600,000 | 1,599,999 | 999,999 | 166·67 |
| 650,000 | 1,766,665 | 1,116,665 | 171·79 |
| 700,000 | 1,933,332 | 1,233,332 | 176·19 |
| 750,000 | 2,130,000 | 1,380,000 | 184·00 |
| 800,000 | 2,330,000 | 1,530,000 | 191·25 |
| 850,000 | 2,530,000 | 1,680,000 | 197·65 |
| 900,000 | 2,730,000 | 1,830,000 | 203·33 |
| 950,000 | 2,930,000 | 1,980,000 | 208·42 |
| 1,000,000 | 3,130,000 | 2,130,000 | 213·00 |
| PREVIOUS GROSS GIFTS TOTALLING £100,000 | |||
value of asset transferred (after all tax) | Combined value of asset and tax paid by donor
| Tax payable
| Tax payable as proportion of asset transferred
|
| £ | £ | £ | Per cent
|
| 20,000 | 28,462 | 8,462 | 42·31 |
| 30,000 | 43,846 | 13,846 | 46·15 |
| 40,000 | 60,435 | 20,435 | 51·09 |
| 50,000 | 77,826 | 27,826 | 55·65 |
| 60,000 | 95,217 | 35,217 | 58·69 |
| 70,000 | 114,500 | 44,500 | 63·57 |
| 80,000 | 134,500 | 54,500 | 68·13 |
| 90,000 | 155,000 | 65,000 | 72·22 |
| 100,000 | 177,222 | 77,222 | 77·22 |
| 125,000 | 236,875 | 111,875 | 89·50 |
| 150,000 | 299,375 | 149,375 | 99·58 |
| 175,000 | 361,875 | 186,875 | 106·79 |
| 200,000 | 427,857 | 227,857 | 113·93 |
| 225,000 | 499,286 | 274,286 | 121·90 |
| 250,000 | 570,714 | 320,714 | 128·29 |
| 275,000 | 642,143 | 367,143 | 133·51 |
| 300,000 | 713,571 | 413,571 | 137·86 |
| 350,000 | 856,428 | 506,428 | 144·69 |
| 400,000 | 1,015,833 | 615,833 | 153·96 |
| 450,000 | 1,182,499 | 732,499 | 162·78 |
| 500,000 | 1,349,166 | 849,166 | 169·83 |
| 550,000 | 1,515,832 | 965,832 | 175·61 |
| 600,000 | 1,682,499 | 1,082,499 | 180·42 |
| 650,000 | 1,849,165 | 1,199,165 | 184·49 |
| 700,000 | 2,039,000 | 1,339,000 | 191·29 |
| 750,000 | 2,239,000 | 1,489,000 | 198·53 |
| 800,000 | 2,439,000 | 1,639,000 | 204·88 |
| 850,000 | 2,639,000 | 1,789,000 | 210·47 |
| 900,000 | 2,839,000 | 1,939,000 | 215·44 |
| 950,000 | 3,039,000 | 2,089,000 | 219·89 |
| 1,000,000 | 3,239,000 | 2,239,000 | 223·90 |
| PREVIOUS GROSS GIFTS TOTALLING £200,000 | |||
Value of asset transferred (after all tax) | Combined value of asset and tax paid by donor
| Tax payable
| Tax payable as proportion of asset transferred
|
| £ | £ | £ | Per cent
|
| 20,000 | 40,000 | 20,000 | 100·00 |
| 30,000 | 61,111 | 31,111 | 103·70 |
| 40,000 | 83,333 | 43,333 | 108·33 |
| 50,000 | 106,250 | 56,250 | 112·50 |
| 60,000 | 131,250 | 71,250 | 118·75 |
| 70,000 | 156,250 | 86,250 | 123·21 |
| 80,000 | 181,250 | 101,250 | 126·56 |
| 90,000 | 206,250 | 116,250 | 129·17 |
| 100,000 | 231,250 | 131,250 | 131·25 |
| 125,000 | 293,750 | 168,750 | 135·00 |
| 150,000 | 364,286 | 214,286 | 142·86 |
| 175,000 | 435,714 | 260,714 | 148·98 |
| 200,000 | 507,143 | 307,143 | 153·57 |
| 225,000 | 578,571 | 353,571 | 157·14 |
| 250,000 | 650,000 | 400,000 | 160·00 |
| 275,000 | 721,428 | 446,428 | 162·34 |
| 300,000 | 792,857 | 492,857 | 164·29 |
| 350,000 | 958,333 | 608,333 | 173·81 |
| 400,000 | 1,124,999 | 724,999 | 181·25 |
| 450,000 | 1,291,666 | 841,666 | 187·04 |
| 500,000 | 1,458,332 | 958,332 | 191·67 |
| 550,000 | 1,624,998 | 1,074,998 | 195·45 |
| 600,000 | 1,791,665 | 1,191,665 | 198·61 |
| 650,000 | 1,990,000 | 1,340,000 | 206·15 |
| 700,000 | 2,190,000 | 1,490,000 | 212·86 |
| 750,000 | 2,390,000 | 1,640,000 | 218·67 |
| 800,000 | 2,590,000 | 1,790,000 | 223·75 |
| 850,000 | 2,790,000 | 1,940,000 | 228·24 |
Value of asset transferred (after all tax) | Combined value of asset and tax paid by donor
| Tax payable
| Tax payable as proportion of asset transferred
|
| £ | £ | £ | Per cent.
|
| 900,000 | 2,990,000 | 2,090,000 | 232·22 |
| 950,000 | 3,190,000 | 2,240,000 | 235·79 |
| 1,000,000 | 3,390,000 | 2,390,000 | 239·00 |
| 1. The calculations, as before, are based on the assumption that the donor pays the tax and transfers the net amounts as in the left-hand columns. | |||
| 2. It is assumed that all transfers are chargeable transfers (i.e. there are no exemption for the first £1,000 etc.). | |||
asked the Chancellor of the Exchequer what would be the appropriate figures in columns 2, 3 and 4 of the table in the Written Answer of 6th February to the hon. Member for Blaby, assuming that it was the combined value of the asset and the tax paid by the donor which had appreciated in money value, and assuming the same set of capital transfer tax rates as before; and what would be the comparable figures (a) in the answer given on 6th February and (b) in the answer to the above Question, assuming that, in each instance, the recently announced reduced rates for lifetime gifts were to apply.
pursuant to his reply [Official Report, 14th February 1975; Vol. 886, c. 235], gave the following information:
| TABLE 1 | |||
| At CTT rates originally applicable to all transfers. | |||
| Value of asset transferred (after all tax) | Combined value of asset and tax paid by donor | CCT and CGT payable | Tax payable as proportion of asset transferred |
| £ | £ | £ | Per cent |
| 20,000 | 26,194 | 6,194 | 30·97 |
| 30,000 | 41,986 | 11,986 | 39·95 |
| 40,000 | 59,526 | 19,526 | 48·81 |
| 50,000 | 78,988 | 28,988 | 57·98 |
| 60,000 | 100,194 | 40,194 | 66·99 |
| 70,000 | 123,182 | 53,182 | 75·97 |
| 80,000 | 148,224 | 68,224 | 85·28 |
| 90,000 | 176,002 | 86,002 | 95·56 |
| 100,000 | 205,955 | 105,955 | 105·95 |
| 125,000 | 285,474 | 160,474 | 128·38 |
| 150,000 | 364,993 | 214,993 | 143·33 |
| 175,000 | 444,513 | 269,513 | 154·01 |
| 200,000 | 524,032 | 324,032 | 162·02 |
| 225,000 | 603,552 | 378,552 | 168·25 |
| 250,000 | 689,773 | 439,773 | 175·91 |
| 275,000 | 780,652 | 505,652 | 183·87 |
| 300,000 | 871,532 | 571,532 | 190·51 |
| 350,000 | 1,053,290 | 703,290 | 200·94 |
| 400,000 | 1,235,049 | 835,049 | 208·76 |
| 450,000 | 1,440,889 | 990,889 | 220·20 |
| 500,000 | 1,652,941 | 1,152,941 | 230·59 |
| 550,000 | 1,864,992 | 1,314,992 | 239·09 |
| 600,000 | 2,077,044 | 1,477,044 | 246·17 |
| 650,000 | 2,289,095 | 1,639,095 | 252·17 |
| 700,000 | 2,501,147 | 1,801,147 | 257·31 |
| 750,000 | 2,746,917 | 1,996,917 | 266·26 |
| 800,000 | 3,001,379 | 2,201,379 | 275·17 |
| 850,000 | 3,255,841 | 2,404,841 | 283·04 |
The figures required are shown in the following tables.
Table 1 below is based on the assumption that capital gains tax at the full rate of 30 per cent. is chargeable on the gross value of the asset transferred; the rates of tax used are those originally applicable to all transfers but now applicable only to transfers on death.
Table 2 gives the corresponding figures to those given in my reply to the hon. Member of 6th February but using the recently announced lower rates for lifetime transfers.
Table 3 is on the corresponding basis to Table 1 but again using the newly announced lower rates.
Value of asset transferred (after all tax) | Combined value of asset and tax paid by donor
| CCT and CGT payable
| Tax payable as proportion of asset transferred
|
| £ | £ | £ | Per cent.
|
| 900,000 | 3,510,303 | 2,610,303 | 290·03 |
| 950,000 | 3,764,765 | 2,814,765 | 296·29 |
| 1,000,000 | 4,019,227 | 3,019,227 | 301·92 |
| TABLE 2 | |||
| At new CTT rates applicable to lifetime transfer. | |||
Value of asset transferred (after all tax) | Combined value of asset and taxes paid by donor
| CTT and CGT payable
| Tax payable as proportion of asset transferred
|
| £ | £ | £ | % |
| 20,000 | 25,716 | 5,716 | 28·58 |
| 30,000 | 39,455 | 9,455 | 31·52 |
| 40,000 | 53,686 | 13,686 | 34·21 |
| 50,000 | 68,312 | 18,312 | 36·62 |
| 60,000 | 83,369 | 23,369 | 38·95 |
| 70,000 | 98,592 | 28,592 | 40·85 |
| 80,000 | 114,203 | 34,203 | 42·75 |
| 90,000 | 130,197 | 40,197 | 44·66 |
| 100,000 | 146,713 | 46,713 | 46·71 |
| 125,000 | 192,951 | 67,951 | 54·36 |
| 150,000 | 243,596 | 93,596 | 62·40 |
| 175,000 | 300,710 | 125,710 | 71·83 |
| 200,000 | 364,149 | 164,149 | 82·07 |
| 225,000 | 433,457 | 208,457 | 92·65 |
| 250,000 | 502,765 | 252,765 | 101·11 |
| 275,000 | 572,073 | 297,073 | 108·03 |
| 300,000 | 649,906 | 349,906 | 116·64 |
| 350,000 | 806,379 | 456,379 | 130·39 |
| 400,000 | 962,851 | 562,851 | 140·71 |
| 450,000 | 1,119,324 | 669,324 | 148·74 |
| 500,000 | 1,299,070 | 799,070 | 159·81 |
| 550,000 | 1,479,352 | 929,352 | 168·97 |
| 600,000 | 1,659,634 | 1,059,634 | 176·61 |
| 650,000 | 1,839,916 | 1,189,916 | 183·06 |
| 700,000 | 2,020,198 | 1,320,198 | 188·60 |
| 750,000 | 2,200,480 | 1,450,480 | 193·40 |
| 800,000 | 2,413,347 | 1,613,347 | 201·67 |
| 850,000 | 2,626,963 | 1,776,963 | 209·05 |
| 900,000 | 2,840,578 | 1,940,578 | 215·62 |
| 950,000 | 3,054,194 | 2,104,194 | 221·49 |
| 1,000,000 | 3,267,809 | 2,267,809 | 226·78 |
| TABLE 3 | |||
| At new CTT rates applicable to lifetime transfers. | |||
Value of asset transferred (after all tax) | Combined value of asset and taxes paid by donor
| CTT and CGT payable
| Tax payable as proportion of asset transferred
|
| £ | £ | £ | Per cent
|
| 20,000 | 25,789 | 5,789 | 28·94 |
| 30,000 | 39,805 | 9,805 | 32·68 |
| 40,000 | 54,447 | 14,447 | 36·12 |
| 50,000 | 69,591 | 19,591 | 39·18 |
| 60,000 | 85,284 | 25,284 | 42·14 |
| 70,000 | 101,188 | 31,188 | 44·55 |
| 80,000 | 117,585 | 37,585 | 46·98 |
| 90,000 | 134,470 | 44,470 | 49·41 |
| 100,000 | 152,019 | 52,019 | 52·02 |
| 125,000 | 202,186 | 77,186 | 61·75 |
| 150,000 | 257,960 | 107,960 | 71·97 |
| 175,000 | 321,965 | 146,965 | 83·98 |
| 200,000 | 394,019 | 194,019 | 97·01 |
| 225,000 | 473,538 | 248,538 | 110·46 |
| 250,000 | 553,057 | 303,057 | 121·22 |
| 275,000 | 632,577 | 357,577 | 130·03 |
| 300,000 | 722,944 | 422,944 | 140·98 |
| 350,000 | 904,702 | 554,702 | 158·49 |
| 400,000 | 1,086,461 | 686,461 | 171·62 |
Value of asset transferred (after all tax) | Combined value of asset and tax paid by donor
| CCT and CGT payable
| Tax payable as proportion of asset transferred
|
| £ | £ | £ | Per cent.
|
| 450,000 | 1,268,219 | 818,219 | 181·83 |
| 500,000 | 1,479,589 | 979,589 | 195·92 |
| 550,000 | 1,691,640 | 1,141,640 | 207·57 |
| 600,000 | 1,903,692 | 1,303,692 | 217·28 |
| 650,000 | 2,115,743 | 1,465,743 | 225·50 |
| 700,000 | 2,327,795 | 1,627,795 | 232·54 |
| 750,000 | 2,539,846 | 1,789,846 | 238·65 |
| 800,000 | 2,793,356 | 1,993,356 | 249·17 |
| 850,000 | 3,047,818 | 2,197,818 | 258·57 |
| 900,000 | 3,302,280 | 2,402,280 | 266·92 |
| 950,000 | 3,556,742 | 2,606,742 | 274·39 |
| 1,000,000 | 3,811,204 | 2,811,204 | 281·12 |
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.
pursuant to his reply [Official Report, 20th February 1975; Vol. 886, c. 472], gave the following information:The basis for returns of capital transfers will be decided after the Report stage of the Finance Bill is complete.
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.
pursuant to his reply [Official Report, 20th February 1975; Vol. 886, c. 472], gave the following information:Certain communications between a client and his legal advisers are protected by the general law from disclosure in legal proceedings. This privilege does not extend to communications between accountants and their clients. The capital transfer tax provisions dealing with the power to obtain information have been drafted in the light of this privilege.
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.
pursuant to his reply [Official Report, 20th February 1975; Vol. 886, c. 472], gave the following information:The Finance Bill provides that the due date for payment of capital transfer tax on lifetime transfers will be six months after the end of the month in which the transfer was made. Chargeable lifetime transfers are to be reported to the Inland Revenue no later than 12 months from the end of the month in which the transfer was made. These matters are under consideration following the Committee stage of the Finance Bill.
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.
pursuant to his reply [Official Report, 20th February 1975; Vol. 886, c. 473], gave the following information:I am considering the points raised in the debate about these limits in the Committee stage of the Finance Bill.