HC Deb 14 April 1986 vol 95 cc313-4W
Dr. Glyn

asked the Chancellor of the Exchequer what representations he has received seeking the exclusion from the proposed implementation of his Budget proposals on capital transfer tax of certain insurance-based plans and other trusts completed on Budget day itself; and if he will make a statement.

Mr. Moore

Two representations have been received. One suggests that the Budget proposals affecting gifts with reservation should be effective from the time of the Budget announcement. The other suggests the proposals should be effective from midnight on Budget Day. The inheritance tax proposals apply to gifts made on Budget day itself, and it is right that the provisions for the new charge on gifts with reservation should come into force at the same time. If they did not, a gift made on 18 March would have the benefit of the new reliefs without being subject (where appropriate) to the new charge.