§ Mr. MandelsonTo ask the Chancellor of the Exchequer what was(a) the total value and (b) the number of estates, notified for probate in the latest available year where the net estate was valued at £1 million or over and no inheritance tax was paid.
§ Mr. Nelson[holding answer 29 April 1994]: Exemption from inheritance tax applies to certain transfers, for example between husband and wife and to charities. Relief is also allowed in respect of certain agricultural property and business assets in order that family farms and businesses can be passed on.
Provisional estimates for estates applying for grants of representation where death occurred in the financial year 1990–91, and where the net estate was valued at £1 million or over are given below. Figures for more recent years are not available.
Number Number of estates applying for grants of representation 743 Number of estates not taxed 226 Total net estate value of estates not taxed (£ million) 490
§ Mr. MandelsonTo ask the Chancellor of the Exchequer if he will update the answer to the hon. Member for Newcastle upon Tyne, East (Mr. Brown),Official Report, 15 March 1991, columns 700–1, on capital transfer tax and inheritance tax.
§ Mr. Nelson[holding answer 29 April 1994]: Latest available estimates for capital transfer and inheritance tax for 1993–94 and 1994–95 are as follows:
655W
Estimate Reduction, compared with indexed 1978–79 regime is: Total liability (£ million) 1993–94 770 1994–95 820 Average liability1 (£) 1993–94 11,400 1994–95 11,800 Taxpayer numbers (thousands) Indexed regime 1993–94 68 1994–95 69
Estimate Present regime 1993–94 20 1994–95 21 1 The reduction in the average liability is calculated using estimated numbers of taxpayers under the indexed 1978–79 regime. These estimates are based on the estimated number and value of taxable estates passing on death in 1993–94 and 1994–95 under existing rules and make no allowance for any impact which the indexed 1978–79 tax rate schedule would have on the level of taxable estates.