§ Mr. MacGregorasked the Chancellor of the Exchequer whether he will estimate, for the current year or a recent year, the yield of a wealth tax (a) levied at the rates for tax B in Command Paper No. 5704, beginning at 1 per cent. on wealth of £100,000 to £300,000 and rising to 5 per cent. on wealth over £5 million, (b) levied at the rate of 5 per cent. on personal wealth in excess of £60,000, and 425W (c) at 1 per cent. on wealth of £100,000 and above.
§ Mr. Denzil DaviesThe yield of a wealth tax will depend on reliefs and other structural features as well as on the tax rates. It is broadly estimated however that on the basis of the distribution of wealth in the United Kingdom in 1975 the yield from the rates mentioned in a. b and c would be £200 million, £1050 million, and £135 million respectively. There would in addition be a further yield, not readily quantifiable under basis b, from certain kinds of trusts; this has been estimated to be between £70 million and £160 million under basis a, and between £35 million and £80 million under basis c. On the basis of asset values at the present time the yield would be likely to be significantly higher, but reliable estimates are not yet available.