asked Her Majesty's Government:
How much they raised in the last financial year for which records are available through inheritance tax; how much extra income tax would need to be collected to replace that amount of money; and what effect it would have on rates of income tax. [HL7466]
Inheritance tax receipts are published on the HMRC website at www.hmrc.gov.uk/stats/tax_receipts/table1-2.xls. The total estimated receipts for 2006-07 are broadly equivalent to what would be raised by increasing the basic rate of income tax by 1 pence as shown in the relevant tax ready reckoner. www.hmrc.gov.uk/stats/tax_expenditures/1_6_apr06.xls. The results cover only the direct effects of tax changes on tax receipts. In practice, changes to the tax regime will affect economic variables which in turn would have further effects on tax receipts.