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 the 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.
pursuant to his reply [Official Report, 24th March 1975; Vol. 889, c. 36], gave the following information:The maximum rate of capital transfer tax is 75 per cent., which applies both on gifts in life and on death. On death the tax is charged on the deceased's estate as a whole. For a lifetime gift, if the donee bears the tax, it is charged on the amount given to him; if the donor bears the tax the amount chargeable includes the tax. This marginal rate is exceeded in Denmark and equalled in Belgium—both on gifts and inheritances. In the United States of America it is exceeded in their estate duty on death.
small and medium-sized firms in the assisted areas: