§ I have been very anxious to find some way of mitigating the burden of estate duty. It is widely regarded as severe and represents a real disincentive to saving. This is a duty which hon. Members on both sides of the House recognise can cause particular hardship in the case of the smaller estates.
§ I therefore propose to raise the starting point for liability from the present £10,000 to £12,500. This change will exempt almost a quarter of the total of estates now liable to estate duty. The cost will be £20 million for a full year and £10 million in 1971–72. This proposal will take effect in respect of deaths occurring after today.
§ I am also very conscious of the difficulties which the burden of estate duty can cause for a continuing family business when the proprietor dies. I am therefore proposing a measure of relief for unincorporated businesses and for certain unquoted shares in a family company by spreading the payment of the duty over an eight-year period. I propose to allow the same spread for estate duty on leasehold property.