§ Mr. Hordernasked the Chancellor of the Exchequer what would be the cost to the Revenue if the bands of capital on 506W life insurance gifts on which capital transfer tax is paid were doubled, and if the same rates of tax were applied on these doubled levels.
§ Mr. Peter ReesI assume that what my hon. Friend is suggesting is a third scale of rates for capital transfer tax which would be applied only to lifetime gifts of insurance policies, the scale being constructed in such a way that the portion of value applicable to each rate of tax would be double the amount set out in the second table in section 37(3) of the Finance Act 1975. It is estimated that the direct full-year cost of applying such a scale to assignments of life insurance policies by way of gift would be under £1 million.