Written Answers
Reservoir Closures: Fife
asked Her Majesty's Government:Whether, before consenting to the closure of 20 reservoirs in Fife, they will take into consideration the effect that this will have upon sport and recreation, angling in particular, in that part of Scotland.
It is for Fife Regional Council to decide whether to retain reservoirs no longer needed for public water supply purposes. I understand it to be the council's policy to consult all interested parties, including planning and environmental bodies, before taking such action. I also understand however that reports that the council are considering the closure of as many as 20 such reservoirs are incorrect.
National Insurance And Taxation
asked Her Majesty's Government:What would be the saving if the national insurance contribution system were abolished, and the same amounts raised by means of increases in the rates of corporation tax and income tax respectively, benefits being paid on criteria of residence alone.
An estimated £10·7 billion is expected to be raised from employers' contributions in 1984–85, including the sums allocated to the Redundancy and Maternity Fund and to the National Health Service, and an estimated £10·1 billion from contributions paid by the employees and the self-employed. Raising the same amounts from corporation tax and income tax respectively it would have no significant effect on Inland Revenue's administrative costs. The administrative cost of collecting contributions in 1984–85 is estimated to be about £160 million. If the contributory system was abandoned, and the state retirement pension and other national insurance benefit were paid on the basis of residence alone, the administrative costs of collecting contributions would be saved; but far more people would qualify for benefits, and the resulting increase in benefit expenditure and the administrative cost of paying out to more people would easily offset that saving. The net cost cannot be quantified easily, but it is likely to be substantial.
Death Duty: Spain And Gibraltar
asked Her Majesty's Government:What are the current rates of death duty (or equivalent) in Spain and in Gibraltar.
The information requested is given below:
Spain
Spain has an inheritance tax, which is levied on the share of each heir in the deceased's estate. The scales of rates vary with the relationship of the heir to the deceased. The current scales are:
Rates %
| |||||||
Slice of net taxable inheritance (persetas)
| Scale 1
| Scale 2
| Scale 3
| Scale 4
| Scale 5
| Scale 6
| Scale 7
|
| 1–10,000 | 3 | 5 | 23 | 28 | 40 | 42 | 58 |
| 10,001–25,000 | 4 | 7 | 25 | 30 | 42 | 45 | 60 |
| 25,001–50,000 | 6 | 9 | 27 | 32 | 44 | 48 | 62 |
| 50,001–100,000 | 7 | 10 | 30 | 35 | 47 | 51 | 64 |
| 100,001–250,000 | 8 | 11 | 33 | 36 | 49 | 54 | 66 |
| 250,001–500,000 | 9 | 12 | 36 | 41 | 52 | 57 | 68 |
| 500,001–1,000,000 | 10 | 13 | 40 | 44 | 55 | 60 | 70 |
| 1,000,001–3,000,000 | 12 | 14 | 44 | 48 | 58 | 63 | 73 |
| 3,000,001–10,000,000 | 13 | 15 | 47 | 50 | 60 | 66 | 76 |
| 10,000,001–25,000,000 | 20·95 | 25·3 | 54·61 | 57·76 | 66·94 | 72·48 | 81·3 |
| 25,000,001–50,000,000 | 23·64 | 28·8 | 56·88 | 59·98 | 69·04 | 74·5 | 83·2 |
| 50,000,001–100,000,000 | 26.29 | 32·24 | 59·11 | 62·16 | 71·1 | 75·64 | 85·06 |
| over 100,000,000 | 28·9 | 35·62 | 61·3 | 64·3 | 73·96 | 76·76 | 86·88 |
In brief the scales apply to inheritances by the following:
Scale 1: Spouses, descendants, of the deceased
Scale 2: Ancestors.
Scale 3: Ancestors of the spouse.
Scale 4: Brothers and sisters.
Scale 5: Uncles, aunts, nephews, nieces.
Scale 6: First cousins.
Scale 7: Other persons.
Gibraltar
The rates of estate duty are as follows:
Where the net taxable estate is
| Rate %
|
| Up to £10,000 | Nil |
| £10,001–£20,000 | 5 |
| £20,001–£30,000 | 10 |
| £30,001–£50,000 | 15 |
| £50,001–£100,000 | 20 |
| over £100,000 | 25 |