§ Mr. Fauldsasked the Chancellor of the Duchy of Lancaster whether his statement, Official Report, 3 December, column 61, that when the value of works of art accepted in lieu of tax is set against tax liability the property accepted is not itself liable to tax, represents or anticipates a change from the previous convention of deducting 75 per cent. of notional tax from that value; and whether he will make a statement relating to any changes in that administrative convention which may be contemplated or under consideration.
§ Mr. St. John-StevasAs I said on 3 December, the National Heritage Bill fulfils our commitment to maintain intact the existing system of acceptance of property in satisfaction of capital transfer tax and estate duty. There will be no change in the method of calculating the amount of tax offset by the acceptance of a particular piece of property.