To ask the Chancellor of the Exchequer if he will estimate the revenue effect in 1989–90 of reducing the top rate of inheritance tax to 40 per cent.; and if he will give the most recent available figures for the annual number of taxpayers paying inheritance tax at a rate above 40 per cent. and the average value of their estate.
The cost in 1989–90 is estimated at £150 million. It is estimated that for 1987–88 a total of 5,200 taxpayers will have paid IHT at rates above 40 per cent. The average value of their estates is estimated at £475,000.