§ Mr. Andrew SmithTo ask the Chancellor of the Exchequer what is his estimate of the full-year cost to the Revenue of the introduction of the business reliefs for inheritance tax which he has announced to take effect from March 1993; and what public benefits he expects from these changes.
§ Mr. Dorrell[holding answer 16 December 1992]: The estimated reduction in the yield of inheritance tax for 379W transfers in 1992–93 resulting from the changes to business and agricultural relief made in the Finance (No. 2) Act 1992 is £45 million in a full year. The cost of the inheritance tax exchanges for the new London international financial futures and options exchange announced on 4 December 1992 is expected to be negligible. These changes, which took effect from March 1992, encourage the creation and development of small family businesses for the wider benefit of the national economy. There has been no announcement of changes to business reliefs for inheritance tax to take effect from March 1993.