§ Mr. Copeasked the Chancellor of the Exchequer why he proposes to impose capital transfer tax, unlike estate duty, on assets passing on the death of a member of the Armed Forces on active service.
§ Dr. GilbertParagraph 1 of Schedule 7 to the Finance Bill provides for the continuation, under capital transfer tax, for a 10-year period, of the existing estate duty exemption for members of the Armed Forces killed on active service. At the end of the 10-year period it will be open to the Government of the day to review the position and continue the relief if it then appears appropriate to do so.
§ Mr. Copeasked the Chancellor of the Exchequer what is the financial or defence significance of 1984 which has caused him to propose the imposition of capital transfer tax on members of the Armed Forces killed on active service after that year.
§ Dr. GilbertSince it is proposed, under the provisions contained in the Finance Bill, that transfers between spouses should be completely exempt from capital transfer tax, my right hon. Friend considers it right that the need for a special exemption from the tax for members of the 707W Armed Forces killed on active service should be reconsidered after the tax has been in operation for a period. The present wording of Paragraph 1 of Schedule 7 to the Finance Bill is designed to ensure that the matter is looked at again in 10 years' time.