§ Mr. Welshasked the Chancellor of the Exchequer what steps he has taken to ease the transfer of family-owned small businesses where holdings are transferred from a parent to a child or grandchild; and if he plans to introduce measures to assist this process.
§ Mr. Denzil DaviesIn 1976 a special relief from capital transfer tax was introduced for transfers of controlling shareholdings in companies, interests in unincorporated businesses, and certain assets used in a business. The relief was initially a 30 per cent. reduction in the value of such transfers. This was increased to 50 per cent., from 27 October 1977, for transfers of controlling shareholdings and interests in unincorporated businesses, and a relief of 20 per cent. was introduced from the same date for minority shareholdings in unquoted companies. There is also provision for payment by interest-free instalments over eight years in many
Year Single person £ Single-wage married couple £ Two-wage married couple £ Single parent £ Widowed mother £ 1938–39 125 225 281 125 125 1950–51 138 225 363 138 138 1960–61 180 309 489 231 231 1970–71 418 598 1,016 546 546 1978–79 985 1,535 2,520 1,535 1,535 Earned income relief was allowed for years up to 1972–73 and has been taken into account in these figures.
In the case of the two-wage married couple it has been assumed that the wife earns enough to qualify for the full allowance.