§ Mr. Ridleyasked the Chancellor of the Exchequer if he will set out for Germany, Belgium, France, Holland, Italy and the United Kingdom a table showing the countries which have a capital gains tax; and in which of them a gratuitous transfer of capital other than cash either in life or on death results in a possible charge to capital gains tax.
173W
§ Dr. GilbertApart from the United Kingdom, none of the countries specified has a comprehensive capital gains tax. but all of them levy tax on certain capital gains of private individuals, and on most capital gains of businesses and companies. There can be a charge to national or local capital gains tax on a gratuitous transfer of capital in life or on death in Holland and Italy. In the United Kingdom there is a charge to capital gains tax on gifts of chargeable assets in excess of £100 in value in a tax year, but no charge on death.
§ Mr. Ridleyasked the Chancellor of the Exchequer if he will set out for Germany, Belgium, France, Holland, Italy and the United Kingdom a table showing what is the maximum rate of tax on a gratuitous transfer of capital by a man on his death to (i) his son, (ii) his nephew, and (iii) a person not related to him; and what is the value of the capital gratuitously transferred at which the maximum rate applies.
§ Dr. GilbertThe information is as follows:
Country Maximum rate Per cent Applying at £000 (approximate sterling equivalent for overseas countries)* 1. Transfer to son: United Kingdom … 75 2,000 Germany … 35 17,873 Belgium … 17 123 France … 20 27 Holland … 17 88 Italy … 31 658 2. Transfer to nephew: United Kingdom … 75 2,000 Germany … 50 17,866 Belgium … 70 121 France … 55 0 Holland … 45 88 Italy … 55 658 3. Transfer to person not related: United Kingdom … 75 2,000 Germany … 70 17,858 Belgium … 75 121 France … 60 0 Holland … 54 88 Italy … 60 658 * Based on Exchange Rates at 20th March, 1975.
§ Mr. Ridleyasked the Chancellor of the Exchequer if he will set out for Germany, Belgium, France, Holland, Italy and the United Kingdom what the maximum rate of tax on a gratuitous 174W transfer of capital is for a man during his lifetime to (i) his son, (ii) his nephew, and (iii) a person not related to him; and what is the value of the capital gratuitously transferred at which the maximum rate applies.
§ Dr. GilbertThe information is as follows:
Country Maximum rate Per cent Applying at £000 (approximate sterling equivalent for overseas countries)* 1. Transfer to son: United Kingdom … 75 2,000 Germany … 35 17,873 Belgium … 17 123 France … 20 27 Holland … 17 88 Italy … 31 658 2. Transfer to nephew: United Kingdom … 75 2,000 Germany … 50 17,866 Belgium … 70 121 France … 55 0 Holland … 45 88 Italy … 55 658 3. Transfer to person not related: United Kingdom … 75 2,000 Germany … 70 17,858 Belgium … 75 121 France … 60 0 Holland … 54 88 Italy … 60 658 * Based on Exchange Rates at 20th March, 1975. Notes:
1. In the third column allowance has been made for the various exemption limits e.g.: the first 250,000Dm. of gifts to a child from one donor in Germany.
2. Rates of exchange at 20th March, 1975: (to the £) Deutsch marks … … … 5.6 Belgian francs … … … 83 French francs … … … 10.1 Dutch florins … … … 5.7 Lire … … … 1,520 3. No allowance has been made for the extra "maintenance" exemptions on gifts to a child in Germany, which vary with the age of the child.
4. The Italian gift tax has two elements where gifts are made to persons other than the ascendants or descendants in the direct line or the surviving spouse viz.: an estate duty element and an inheritance tax element. For the sake of simplicity it is assumed here that all the gifts by the donor are received by one person only.