§ Mr. Roderickasked the Chancellor of the Exchequer if he will make a statement in relation to deaths now occurring about the liabilities to estate duty 424W and to the new tax he announced in the Budget on capital transfers.
§ Mr. Joel BarnettYes. The existing estate duty law will continue to apply as regards deaths in the period between 25th March and a date which will be fixed in the second Finance Bill and which will be not earlier than its publication. As a general principle there will be no question of charging both lifetime tax and death duty in respect of the same event. Accordingly, the second Finance Bill will exempt from the lifetime charge any gifts which are taken into account in determining estate duty liabilities on a death occurring within the period I have mentioned. Exemption from the new charges will also extend to the interest in possession under a settlement of a person whose death in that period brings the settled property within the scope of the estate duty. It will further extend to payments by trustees of pension and superannuation funds consequent on deaths before the date to be fixed in the second Finance Bill.