asked the Chancellor of the Exchequer if in any given tax year a father gives £1,000 to his son and a further £1,000 to his wife which she in turn gives to their son, her gift to the son will be treated as an "associated operation" and thus be subject to capital transfer tax.
Normally, no, but I would refer the hon. Member to the statements I made when this matter was discussed during the Report stage of the Finance Bill.
asked the Chancellor of the Exchequer what are the maximum marginal rates of capital transfer tax where a gift is made (a) during the lifetime of a donor and (b) under his will, distinguishing between cases where the donor and the donee assume liability to pay the tax; and, in the light of information available to him, in which foreign countries these rates are exceeded with similar taxes on gifts or inheritances.
I shall let the hon. Member have a reply as soon as possible.