HC Deb 17 February 1978 vol 944 cc404-6W
Mr. Hicks

asked the Chancellor of the Exchequer what are the principal recommendations of the review body investigating the preventive services of the Customs and Excise; what proposals are to be introduced by his Department, and when; what are the chief changes and effects of these proposals; what consultations have taken place with the staff side of the Customs and Excise Group of the Society of Civil Servants; and if he will make a statement.

Mr. Robert Sheldon

The departmental review body which examined the aims, objectives and organisation of the Customs preventive controls reported in 1975. The recommendations were numerous, but the main theme was that efficiency could be improved by reducing the level of static and routine controls, and introducing a more selective system which could be applied in a flexible, unpredictable manner.

The main proposals, which are due to be introduced progressively from 1st April 1978, embrace:

  1. (a) the replacement of the routine control of commercial vessels by a selective boarding system determined by the potential revenue risk of the traffic concerned; and
  2. (b) the development of mobile teams to provide flexibility in the application of controls upon freight, passengers and crews.
The new organisation would permit a more effective and economic use of resources. It will also provide the means for Customs to reinforce the normal controls at a wide variety of places at short notice.

Value of estate in March 1974 Effective rate of tax in March 1974 Assumed value of estate in November 1977 Effective rate of tax in November 1977
£ (i) Per cent. £ (ii) Per cent.
15,000 — 27,400 0.9
20,000 6.2 36,500 4.2
30,000 14.2 54,800 11.3
40,000 19.4 73,100 17.1
50,000 23.5 91,300 21.7
60,000 27.1 109,600 25.6
80,000 32.8 146,100 32.2
100,000 37.3 182,700 37.4
150,000 44.8 274,000 44.9
200,000 49.9 365,300 48.7
500,000 62.0 931,300 57.7
1,000,000 68.5 1,826,500 63.6
2,000,000 71.7 3,653,000 69.0
Notes:
(i) Estate duty rates applied to the estates of individuals who died in March 1974.
(ii) As proposed in the Chancellor of the Exchequer's Economic Statement on 26th October 1977.

My hon. Friend will wish to bear in mind that a significant number of estates which were paying tax in March 1974 will either be paying no tax at all in November 1977, or considerably less tax than the figures indicated in the table, because for capital transfer tax property passing to a surviving spouse is exempt without limit.

Consultations with the Customs and Excise Group of the Society of Civil Servants began in 1975. All major aspects of the review, and the changes flowing from it, were exhaustively discussed before agreement was reached in August 1977 with the Central Staff Side of the departmental Whitley Committee.