§ Mr. Canavanasked the Chancellor of the Exchequer whether, in the case of disabled people, he will consider a partial or total exemption from paying capital transfer tax.
§ Mr. Denzil Davies, pursuant to the reply [Official Report, 22nd July 1977], gave the following information:
Lifetime gifts that constitute a reasonable provision for the care and maintenance of a relative who is incapacitated 274W Economic Trends for June 1977, a copy of which is in the Library. This gives the following information:
by infirmity from maintaining himself have always been exempt from capital transfer tax. There is also a relief for discretionary trusts for the benefit of mentally handicapped people. This is to be extended by a provision in the current Finance Bill to cover trusts for the benefit of those in receipt of attendance allowance. My right hon. Friend does not consider any further special relief would be justified.
§ Mr. Canavanasked the Chancellor of the Exchequer whether he will initiate a study of the effects on disabled people who, by inheriting a family home, are required to pay capital transfer tax and are disqualified from receiving supplementary allowance because of the capital limit.
§ Mr. Denzil Davies, pursuant to the reply [Official Report, 22nd July 1977], gave the following information:
Although capital transfer tax may be payable under the normal rules after a house is left to a disabled person my right hon. Friend understands that the value of an owner-occupied house is not taken into account as capital for the purpose of the supplementary allowance, and he does not consider that a study of the kind envisaged is necessary.