§ Mr. Dixonasked the Chancellor of the Exchequer what is his estimate of the annual cost to the Exchequer of a concession whereby in an estate where a life interest only passes to the surviving spouse estate duty would be payable on the death of the surviving spouse and not the death of the testator.
§ Mr. NottThe cost would depend on the extent to which legislation based on the proposal encouraged such arrangements. This cannot be forecast. But on the assumption that the maximum advantage were taken, the cost would be about £125 million in the first full year. This cost would be gradually reduced in later years by the resultant increases in duties paid on the death of the surviving spouse.