HC Deb 11 February 1975 vol 886 cc90-1W
Mr. Lawson

asked the Chancellor of the Exchequer what would be the appropriate figures in columns 2, 3 and 4 of the first table in the Financial Secretary's Written Answer of 27th January to the hon. Member for St. Marylebone (Mr. Baker), assuming that the asset transferred had been held for 25 years, that over that period there had been a 10 per cent. per annum rate of inflation and the value of the asset had remained unchanged in real terms, and that "tax paid" in column 2 and "tax payable" in columns 3 and 4 referred to the total of capital transfer tax and capital gains tax.

Dr. Gilbert

, pursuant to his reply [Official Report, 6th February 1975; Vol. 885, c. 596], circulated the following information: An asset which had been held for 25 years and which had appreciated in the manner suggested would be liable for capital gains tax only on the part of the gain accruing from 6th April 1965.

However, on the assumption that the full 25-year gain was chargeable, and that it was the value of the asset actually transferred which had appreciated in money value, and using the set of rates employed in my answer of 27th January—[Vol. 885, c. 61–8]—(not those subsequently an- nounced in relation to lifetime gifts) the required table would be as follows:

Value of Asset Transferred (after all Tax) Combined value of Asset and Tax Paid by Donor Tax Payable Tax Payable proportion of Asset Transferred
£ £ £ Percentage
20,000 26,034 6,034 30.17
30,000 41,169 11,169 37.23
40,000 57,678 17,678 44.19
50,000 75,698 25,698 51.40
60,000 95,088 35,088 58.48
70,000 115,878 45,878 65.54
80,000 138,284 58,284 72.85
90,000 162,840 72,840 80.93
100,000 189,106 89,106 89.11
125,000 258,413 133,413 106.73
150,000 327,721 177,721 118.48
175,000 397,029 222,029 126.87
200,000 466,337 266,337 133.17
225,000 535,644 310,644 138.06
250,000 610,220 360,220 144.09
275,000 688,456 413,456 150.35
300,000 766,693 466,693 155.56
350,000 923,165 573,165 163.76
400,000 1,079,638 679,638 169.91
450,000 1,255,039 805,039 178.90
500,000 1,435,322 935,322 187.06
550,000 1,615,603 1,065,603 193.75
600,000 1,795,886 1,195,886 199.31
650,000 1,976,168 1,326,168 204.03
700,000 2,156,450 1,456,450 208.06
750,000 2,363,232 1,613,232 215.10
800,000 2,576,848 1,776,848 222.11
850,000 2,790,463 1,940,463 228.29
900,000 3,004,079 2,104,079 233.79
950,000 3,217,694 2,267,694 238.70
1,000,000 3,431,310 2,431,310 243.13