HC Deb 07 May 1980 vol 984 cc138-9W
Mr. Faulds

asked the Chancellor of the Exchequer whether, with reference to his written answer to the hon. Member for Warley, East, Official Report, 15 April, column 615, it is a fact, consequent upon that answer, that the Commissioners of Inland Revenue are financially advantaged in so far as they withhold from tax debtors, by means of the application of an administrative accounting practice, a proportion or percentage of the benefit of the tax exemption which is provided for without qualification under statute, in respect of objects so exempted which are accepted by those commissioners for the purpose of satisfying tax debts payable on other property.

Mr. Peter Rees

[pursuant to his reply, of 2 May 1980; c. 700]: A As stated in my written answer of 11 March the Commissioners of Inland Revenue derive no financial advantage from this practice.

Mr. Faulds

asked the Chancellor of the Exchequer whether, with reference to his written answer to the hon. Member for Warley, East, Official Report, 24 April, column 266, that no tax or interest on that tax is taken into account in respect of objects accepted in satisfaction of capital transfer tax charged on other property, he will state the basis on which the interest waived was calculated in the instances referred to in his written answers to the hon. Member for Warley, East, Official Report, 31 October 1979, column 525 and Official Report, 12 February, column 601.

Mr. Peter Rees

[pursuant to his reply, 2 May 1980, c. 700]: As was stated in the earlier replies to which the hon. Member refers, property accepted in lieu of CTT is generally of a standard to qualify for conditional exemption. In these circumstances it will not itself bear tax, but will be accepted in lieu of tax on other property. The interest waived in the cases to which the hon. Member refers was interest on CTT on property other than that ultimately accepted in lieu. The interest was waived for a period following the receipt of the offer.