HC Deb 20 September 1909 vol 11 c16
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. HOBHOUSE

The 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.