HC Deb 17 May 1978 vol 950 cc225-6W
Mr. Ralph Howell

asked the Chancellor of the Exchequer if he will publish a table showing current thresholds, including rates, for each band of capital transfer tax; and if he will also express these as a percentage of the corresponding thresholds, revalued at April 1978 prices when capital transfer tax was introduced.

Mr. Denzil Davies

Table I and II below show the current thresholds and marginal rates of tax and also the current thresholds as a percentage of the March 1974 thresholds revalued to March 1978, the latest date for which the retail prices index is available. Table I also shows the current thresholds as a percentage of the corresponding estate duty thresholds at March 1974, similarly revalued.

TABLE I: CTT RATES FOR TRANSFERS ON DEATH* OR WITHIN 3 YEARS BEFORE DEATH
Current thresholds (£000) Marginal rate of tax (per cent.) Current thresholds as percentage of original CTT thresholds revalued to current prices† Current CTT thresholds as percentage of estate duty March 1974 thresholds revalued to current prices
0 0
25 10 89.3
30 15 80.2
35 20 74.9
40 25‡ 71.3 142.9
50 30 66.9 133.7
60 35 64.2 106.7
70 40 62.4 93.6
90 45 60.2 96.3
110 50 58.8 98.0
130 55 57.95 86.9
160 60 57.1 85.6
510 65 54.6 181.9
1,010 70 54.0 270.0
2,010 and above 75 53.8 215.1
TABLE II: CTT RATES ON OTHER TRANSFERS
Current thresholds (£000) Marginal rates of tax (per cent.) Current thresholds as percentage of original CTT thresholds revalued to current prices†
0 0
25 5 89.3
30 7½ 80.2
35 10 74.9
40 12½ 71.3
50 15 66.9
60 17½ 64.2
70 20 62.4
90 22½ 60.2
110 27½ 58.8
130 35 57.95
160 42½ 57.1
210 50 56.2
260 55 55.6
310 60 55.3
510 65 54.6
1,010 70 54.0
2,010 and above 75 53.8
* Applies to deaths after 12th March 1975.
† On the basis of the change in the retail prices index between March 1974 and March 1978.
‡ Lowest tax rate for estate duty.