§ Mr. Norman Lamont
Capital transfer tax had separate rates of interest for transfers made in lifetime and on death. A single rate is proposed for inheritance tax: this will provide a worthwhile simplification for all concerned, but the special characteristics of these taxes make it appropriate to continue to have a slightly lower rate than for other taxes.
Orders have been laid today substituting a single rate of 8 per cent. interest for the former higher and lower rates of 11 per cent.—for lifetime—and 9 per cent.—for death 176W transfers. This rate will be kept broadly in line with other interest rates, but will not necessarily change as often as the rate for other taxes.
The details are contained in an Inland Revenue press release issued tomorrow.