§ Mr. Chris SmithTo ask the Chancellor of the Exchequer if he will estimate the effect on Treasury revenues in 1991–92 and in a full year of replacing216W inheritance tax with an indexed regime of capital transfer tax on the same basis as that which preceded the 1986 Budget.
§ Mr. MaudeIt is estimated that replacing inheritance tax with an indexed 1985–86 regime of capital transfer tax would increase Government revenues by:
£ million In 1991–92 260 In a full year 710 These estimates are based on the estimated value of taxable estates passing on death in 1991–92 under existing rules and make no allowance for any impact which the indexed 1985–86 regime would have on the level of taxable estates. It has not been possible to estimate the effect of the different ways in which lifetime transfers are taxed under the two regimes.