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Estate Duty (Property In Lieu)

Volume 981: debated on Friday 28 March 1980

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asked the Chancellor of the Exchequer whether, following his written answer to the hon. Member for Warley, East on 11 March, Official Report, column 550, he will specify the means by which, when the acquiring body of tax-exempted objects is the Board of Inland Revenue, the financial benefit of the exemption of such objects from estate duty or capital transfer tax accrues or has accrued, since 1956–57, not to the Commissioners of Inland. Revenue but to the National Land Fund, bearing in mind not only that no credit in this regard has ever figured in the accounts of the National Land Fund, but also that the sums debited to that tuna in those accounts for the credit of the Commissioners of Inland Revenue in respect of the acceptance by them of objects in satisfaction of tax are necessarily higher as a consequence of, and in relation to, the extent to which the administrative practice of the Commissioners has withheld since 1956, without stautory authority for doing so, the full benefit due to the relevant tax debtors of the tax exemption of the objects thus accepted.

[pursuant to his reply 21 March 1980, c. 370–71]: The tax exemption referred to goes to reduce the price paid for the object, which means that the amount the National Land Fund pays out in respect of the object is lower. The resources available for Land Fund expenditure in any year therefore go further and the heritage benefits.