§ 52. Mr. PARKINSONasked the Chancellor of the Exchequer if the practice 667 of individuals and landed proprietors in turning themselves and their estates into limited companies has any effect on the estimated return from estate duties; if so, what percentage of the reduction in taxes from estate duties is due to this practice; and whether action is to be taken to secure to the Exchequer the full duties that may be due on the death of any person?
Mr. CHAMBERLAINAn estimate of the loss of duty, if any, due to the formation of the companies referred to could only be, from the nature of the case, purely conjectural; but I have no reason to believe that the yield of the death duties has been reduced to any material extent by this practice. The hon. Member will recall that legislation to check avoidance of death duties by the method to which he refers was only recently introduced in the Finance Act, 1930. The effect of those provisions is being carefully watched and should the need arise, further consideration will be given to the matter.