§ Mr. Fauldsasked the Chancellor of the Exchequer whether, with reference to his written answer to the hon. Member for Warley, East, Official Report, 19 June, column 629, regarding the elimination by administrative practice of 75 per cent. of the statutory tax exemption in respect of objects surrendered to the Commissioners of Inland Revenue in lieu of tax, an effect on tax debtors of such elimination by the commissioners is to benefit the commissioners financially in the first instance by increasing the amount payable in cash from the private sector by tax debtors to the commissioners, irrespective of any accounting procedures internal to the public sector which might subsequently ensue.
§ Mr. Peter Rees[pursuant to his reply, 27 June 1980, c. 348]: The agreed market value less 75 per cent. of the notional tax on acception objects is set against the tax liability on the remainder of the estate. If the net value of the object and the tax liability are the same no question of a cash payment from the private sector to the Inland Revenue arises. To the extent that the tax liability exceeds the net value a cash payment is needed.
A variation in the rate of the douceur would effect any amount so payable by
Description Valuation £ Outcome Floral marquetry cabinet on stand, c. 1770 80,000 Purchased by Bowes Museum, Barnard Castle Painting "Liberality and Modesty" by Guido Reni — Licence withheld for 6 months, that is to 25 July 1980 Painting: "Apollo Crowning the Singer Pasqualini" by Andrea Sacchi — Licence withheld for 6 months, that is to 25 July 1980 George III ormolu mounted commode 132,817 Exported English Soho tapestry panel, c. 1725 20,750 Purchased by the Vicotria and Albert Museum Farm accounts of Ely Abbey, c. 1007–1025 59,800 Purchased by the British Library Foundation Charter of Westminster Abbey c. 1139 63,800 Purchased by Westminster Abbey Bedhead Embroidered in the grotesque style, c. 1550–1560 28,000 Export licence refused, in view of formal offer to purchase by a public institution An enamelled gold minute-repeating watch with the cipher of Sir John Bennett, c. 1878 28,000 Purchased by the British Museum Pair of flint lock presentation pistols 110,000 Licence withheld for 3 months that is to 30 September 1980 I have deferred a decision on the issue of an export licence for the Algardi bust pending an investigation into the circum stances of its sale.
584Wreducing or increasing the net value of the object accepted in lieu. By the same token the amount payable from Votes to reimburse the Inland Revenue would vary inversely. But, of course, the total amount received by the Inland Revenue in satisfaction of the tax due on the estate would not change.