§ Sir BERKELEY SHEFFIELD (for Sir Samuel Scott)asked at what rate of compound interest it would be necessary to invest 3¾d. in the £ in order to realise a sufficient sum in 30 years to meet the increased Death Duties; whether the 3¾d. applies to all the scales; and what sum in the £, and at what compound interest, it would be necessary to invest in order to meet the full Death Duties?
§ Mr. HOBHOUSEThe rate of compound interest at which it would be necessary to invest 3¾d. in the £ of income, calculated at the rate of 3 per cent. upon the capital value of the property, in order to realise a sufficient sum in 30 years to meet the increased Death Duties at the average rate of those duties, is 3 per cent. The 3¾d. does not apply to all the scales, but only to the average rate. It would be necessary to-invest 1s. 2d. in the £ of income at 3 per cent. compound interest in order to meet the full Death Duties—those existing as well as those proposed—at the average rate of those duties.