§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer how much revenue would be raised from freezing the inheritance tax threshold at its 1989–90 level; and how many estates would be brought into tax as a result.
§ Mr. Lilley[holding answer 9 February 1990]: The direct revenue yield, in a full year at 1990–91 levels, from freezing the inheritance tax threshold at £118,000 rather than increasing it in line with indexation is estimated to be about £85 million. About 3,000 estates would be brought into tax by this measure.
§ Mr. Nicholas BrownTo ask the Chancellor of the Exchequer if he will publish a table on the same basis as that given in his reply to the hon. Member for Dunfermline, East (Mr. Brown) in theOfficial Report, 18 July 1988, column 433, on reductions in inheritance tax liability relative to the 1987–88 rate scale, giving figures for 1990–91.
§ Mr. Lilley[holding answer 9 February 1990]: Assuming statutory indexation of the 1989–90 rate scale, the inheritance tax liability on transfers in 1990–91 is estimated to be about £320 million lower than on an indexed 1987–88
528Win the minimum purchase of premium bonds to £100, the number of bonds and the number of purchases of bonds at each denominational value at which they could he sold.
§ Mr. Ryder[holding answer 13 February 1990]: The number of premium bonds issued for each denominational value is shown in the table:
rate scale. The distribution of the reduction in inheritance tax liability, by percentiles of the 22,000 estates which are expected to pay tax on 1990–91 transfers, assuming an indexed 1989–90 rate scale, is as follows:
Percentiles of estates £ million (a) top 1 per cent. 75 (b) top 5 per cent. 150 (c) top 10 per cent. 190 (d) bottom 70 per cent. l65 (e) bottom 60 per cent. 160 (f) bottom 50 per cent. 150 (g) bottom 25 per cent. l40 1 includes about £20 million from about 8,000 estates which would be liable under the indexed 1987–88 rate scale but not liable under the indexed 1989–90 rate scale.