§ Mr. Gordon BrownTo ask the Chancellor of the Exchequer if he will give the projected reduction in inheritance tax liability of(a) the top 1 per cent., (b) the top 5 per cent., (c) the top 10 per cent., (d) the bottom 70 per cent., (e) the bottom 60 per cent., (f) the bottom 50 per cent. and (g) the bottom 25 per cent. of those liable for inheritance tax in 1988–89 together with the total number of tax units estimated to be liable.
§ Mr. Norman Lamont[holding answer 27 June 1988]: The reduction in inheritance tax liability on transfers in 1988–89 is estimated as follows:
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Taxpaying unit in 1985–86 by marginal rate Region Thousands As per cent, of all taxpaying units 30 per cent. 40 per cent. 45 per cent. 50 per cent. 55 per cent. 60 per cent. 30 per cent. 40 per cent. 45 per cent. 50 per cent. 55 per cent. 60 per cent. North 1,000 11 6 5 (2) (3) 97.2 1.1 0.6 0.5 0.2 0.3 Yorkshire and Humberside 1,570 24 13 8 3 5 96.8 1.5 0.8 0.5 0.2 0.3 North West 2,070 36 21 10 4 5 96.5 1.7 1.0 0.5 0.2 0.2 East Midlands 1,310 16 11 6 (4) 4 96.9 1.2 0.8 0.5 0.3 0.3 West Midlands 1,700 19 (18) (11) 4 5 96.8 1.1 1.0 0.6 0.2 0.3 East Anglia 660 (12) 8 5 (3) (5) 95.3 1.8 1.2 0.7 0.4 0.7 South East 6,200 190 119 75 38 60 92.8 2.8 1.8 1.1 0.6 0.9 South West 1,490 31 14 13 5 (7) 95.6 2.0 0.9 0.8 0.3 0.4 Wales 800 13 7 3 (3) 2 96.6 1.5 0.8 0.4 0.4 0.2
Proportion of taxable estates £ million (a) top 1 per cent. 50 (b) top 5 per cent. 110 (c) top 10 per cent. 140 (d) bottom 70 per cent. 50 (e) bottom 60 per cent. 45 (f) bottom 50 per cent. 40 (g) bottom 25 per cent. 35 There are expected to be about 20,000 taxable estates for 1988–89, with a total reduction in tax of £220 million. The reductions in tax are relative to the 1987–88 rate scale, indexed to 1988–89 by reference to the statutory formula.