§ Mr. Rookerasked the Chancellor of the Exchequer if he will make a statement outlining the changes in capital transfer tax since 1979 giving revenue effects of such changes.
§ Mr. MooreThe main changes since 1979 and their revenue effects, adjusted for inflation, are as follows.
For each of the years 1980–83 some adjustment was made to the threshold or rate bands at a total cost of £80 million.
The limit for transfers to charities was increased in 1980 and 1982 and abolished in 1983 at a cost of £4 million. The annual exemption for lifetime transfers was increased to £3,000 in 1981 at a cost of £1 million.
A 20 per cent. relief for minority shareholdings in unquoted businesses and let agricultural land was introduced in 1981 and increased to 30 per cent. in 1983 at a cost of £5 million. The interest-free instalment facility was extended in 1981 and the period for payment by instalments increased from 8 to 10 years in 1983, at a cost of £7 million.
Quick succession relief was revised in 1981 at a cost of £3 million.
Cumulation of lifetime transfers is limited to 10 years from 27 March 1984.
The period for transitional relief for discretionary trusts was increased in 1979 and 1981, and in 1982 the charge was restructured, at a cost of £5 million.