§ Mr. David Mitchellasked the Chancellor of the Exchequer if he will publish a table showing the current number of 642W civil servants and the current annual cost to public expenditure of administering the capital transfer tax; and whether he will estimate the cost to industry and commerce of seeking to comply with this tax and the regulations made in consequence of it.
§ Mr. Denzil DaviesIt is estimated that the equivalent of about 1,000 full-time staff are currently engaged in the administration of the capital transfer tax at a cost of about £7 million annually. I am not aware of any significant direct compliance costs falling on industry or commerce, as such, in connection with the tax. Individuals engaged in industry and commerce may incur such costs, however, as they did for estate duty.
§ Mr. Joseph Deanasked the Chancellor of the Exchequer when he intends to issue detailed guidance on exemption from capital transfer tax and acceptance in lieu of that tax of works of art, historic buildings, land and other property which may be eligible for such treatment.
§ Mr. Joel BarnettThe Treasury has today issued a memorandum of guidance on capital taxation and the national heritage. Copies of the memorandum have been placed in the Library and are being widely distributed to museums and galleries throughout the country and to other interested bodies.