§ Mr. Burns
To ask the Chancellor of the Exchequer if he will make it his policy that, where the owner of conditionally exempt property is required to sell part of it under the provisions of the Housing and Urban Development Bill, there should be no review of the designation of the whole of the property.
§ Mr. Dorrell
Where there is a disposal of part of a property which is conditionally exempt from inheritance tax, the conditional exemption designation of the whole property is reviewed. If the disposal has not materially affected the heritage entity, the designation for the remainder remains in force and the inheritance tax charge is limited to the part disposal.
Following consideration of representations received, the Government propose that, where a part disposal results solely from leasehold enfranchisement under the Housing and Urban Development Bill, or the Leasehold Reform Act 1967, and there is no breach of undertakings in respect of the retained property, there should be no review of designation of the retained property. In these circumstances, the inheritance tax charge will be limited to the part disposal.
A new clause to the Finance (No. 2) Bill 1993 will be tabled shortly on this proposal.