§ Mr. David Steel
asked the Chancellor of the Exchequer what is his estimate of the income to the Exchequer of a wealth tax of 1 per cent., 2 per cent. and 3 per cent., respectively, per annum on the assumption that personal wealth up to (a) £25,000, and (b) £50,000 would be exempt from such a tax.
§ Mr. Nott
On the basis of the valuation of estates for estate duty in 1970–71, the estimated yields are:
Amount exempted Rate of tax £ million 1% 2% 3% £25,000 170 340 510 £50,000 100 200 300
The yield would depend on the precise scope of the tax and the estimates are subject to wide margins of error. As with previous similar costings, no account has been taken of the depletion or redisposition of personal wealth which might result from the tax, nor of any secondary effects on other taxes.