§ Mr. Cartwrightasked the Chancellor of the Exchequer in how many cases claims for capital transfer tax have been made under section 45(1)(a) of the Finance Act 330W 1975 against persons domiciled in the Channel Islands; how many of these were successful; and what were the sums involved.
§ Mr. Peter ReesPrecise information is not available. There have, however, been several cases under section 45(1)(c) of the Finance Act 1975 and in none of them is tax outstanding.
§ Mr. Cartwrightasked the Chancellor of the Exchequer what procedures are used by the Inland Revenue to collect capital transfer tax under section 45(1)(a) of the Finance Act 1975 from persons domiciled in the Channel Islands.
§ Mr. Peter ReesThe normal collection procedures for unpaid capital transfer tax, in the, absence of payment on demand of tax that has been agreed or has been determined, are recovery by legal process from those liable for it. The latter can, according to the nature of the transfer, include the transferor, the transferee, the personal representatives of a deceased person, the trustees of a settlement, any person in whom the transferred property is vested, and any person for whose benefit the settled property or the income from it is applied. It is possible to take legal proceedings to recover tax from a person outside the United Kingdom. Interest accrues on overdue capital transfer tax at the rate of 9 per cent. per annum—12 per cent. in the case of lifetime gifts.
The legislation also provides that where tax (or interest on it) remains unpaid a charge can be imposed on any property included in the value on which the tax 331W has been charged, including settled property, but excluding in general personal or moveable property in the United Kingdom and heritable property in Scotland.