§ Mr. Berryasked the Chancellor of the Exchequer why the capital transfer tax return requires transferees to give details 1073W of any gift of whatever nature having a value of more than £500.
§ Mr. Denzil DaviesThe purpose of the capital transfer tax return is to enable the Revenue to determine whether a chargeable transfer has been made. Although the transferor is primarily liable for the tax the transferee in certain circumstances may be liable and accordingly both transferors and transferees are asked to complete returns. Transferees arc not required to give details of gifts received totalling £500 or less in a tax year. Although the transferor's annual exemption for the period covered by the current return was £1,000 the transferor may have made gifts to a number of transferees: the £500 limit takes this into account.