§ Mr. Fauldsasked the Chancellor of the Exchequer, if, in the light of hish Answer to the hon. Member for Warley, East, Official Report, 13th May 1977, columns 631–2, giving details of debits from the National Land Fund for the purchase of paintings and objets d'art offered in lieu of tax, and similar detailed answers of 17th July 1973 and 20th March 1975, and of the refusal to give such details in answer to the hon. Member for Staffordshire, South West, he will make a statement of his practice in answering in detail on such matters; if, in particular he will state whether the offer in past satisfaction of tax liabilities of a pastel by Degas of two dancers, currently on loan to the Fitwilliam Museum in Cambridge has now been accepted; and, if so, what sum has been debited or is to be debited to the National Land Fund in respect of such acceptance.
§ Mr. Denzil Davies,pursuant to his reply [Official Report, 9th June 1978; Vol. 951, c. 287–8], gave the following information:
The Inland Revenue is statutorily bound to maintain absolute confidence in all its dealing with an individual's tax affairs. This includes a duty not to reveal the fact that an offer of property in satisfaction of tax has been made. It follows 343W that Inland Revenue may not report the progress of negotiations on any such offer.
However, when payment has been made for the property it is the Treasury's practice to announce the acquisition and the net price paid. The Treasury would not, however, reveal information about the individual making the offer without permission.
The pastel by Degas entitled "Two Dancers in a Field" has now been accepted in lieu of capital transfer tax.
In addition, a painting by Turner entitled "Thomson's Aeolian Harp" and two items of ethonographica, a Haida oil bowl and a Brazilian wood carving, have been accepted in lieu of estate duty.
An announcement about the allocation of these objects will be made in due course by the Minister with special responsibility for the arts, after taking advice from the Standing Commission on Museums and Galleries.
The total cost borne by the National Land Fund, after allowing for relief from estate duty, capital transfer tax and capital gains tax is £325,981, of which £87,370 is attributable to the acquisition of the Degas.