§ Dr. David ClarkTo ask the Chancellor of the Exchequer, pursuant to his answer on 18 June,Official Report, columns 629–30, if he will make a statement about his five-yearly reviews of land exemption from inheritance tax; and what action follows such a review.
§ Mr. DorrellThe five-yearly reviews of cases of land exempted from inheritance tax which are undertaken by the Inland Revenue are in addition to the regular monitoring of such cases by the heritage advisory agencies. The Inland Revenue makes separate inquiry of the landowners to determine whether the undertakings are being observed. Any issues arising are resolved in discussion between the agencies and landowners. If a landowner breaks an undertaking given in respect of conditionally exempt land inheritance tax is chargeable on the current value of the property.
§ Dr. David ClarkTo ask the Chancellor of the Exchequer whether there is any time limit on agreements on exemption from inheritance tax for granting public access to land; and if he will make a statement.
§ Mr. DorrellOnce granted, conditional exemption from inheritance tax will continue provided the owner complies with the terms of the undertakings to maintain and preserve the land and provide reasonable public access to it. A sale of the land will trigger an inheritance tax charge on the current value of the land. If the land changes hands on death or by gift, the exemption can continue, provided the new owner enters into appropriate undertakings. If the new owner does not, there will again be an inheritance tax charge on the current value of land.
§ Dr. David ClarkTo ask the Chancellor of the Exchequer whose responsibility it is to inform the public about the right of access to land exempted from inheritance tax.
§ Mr. DorrellThe owner of land that has been conditionally exempted from inheritance tax is required to publicise the agreed public access arrangements. In addition, the appropriate heritage advisory agency is able to supply information about public access to heritage land including conditionally exempt land, although land will not be identified as conditionally exempt.
§ Dr. David ClarkTo ask the Chancellor of the Exchequer (1) if he will make a statement about the monitoring of land conditionally exempted from inheritance tax by the heritage advisory agencies in England; how often each area of land affected by each agreement is visited; and how many man hours are devoted to this annually;
(2) if he will make a statement about the monitoring of land conditionally exempted from inheritance tax by the heritage advisory agencies in Wales; how often each area of land affected by each agreement is visited; and how many man hours are devoted to this annually;
(3) if he will make a statement about the monitoring of land conditionally exempted from inheritance tax by the heritage advisory agencies in Scotland; how often each area of land affected by each agreement is visited; and how many man hours are devoted to this annually.
§ Mr. DorrellThe heritage advisory agencies routinely monitor compliance by landowners with the undertakings658W which they give in return for conditional exemption from inheritance tax. The level and type of monitoring will depend on the facts of each particular case. Details of the number of man hours devoted to the monitoring of such cases are not available.
§ Dr. David ClarkTo ask the Chancellor of the Exchequer (1) if he will make a statement about the definition of what constitutes reasonable public access by the heritage advisory agencies in England with regard to exemptions from inheritance tax;
(2) if he will make a statement about the definition of what constitutes reasonable public access by the heritage advisory agencies in Wales with regard to exemptions from inheritance tax;
(3) if he will make a statement about the definition of what constitutes reasonable public access by the heritage advisory agencies in Scotland with regard to exemptions from inheritance tax.
§ Mr. DorrellThe heritage advisory agencies advise the Inland Revenue as to what constitutes reasonable public access: each case is considered individually on the basis of its own facts.
The heritage advisory agencies take into account all relevant factors, including, for example, existing rights of way. Additional access may involve formalising existing informal access to open land or extending or joining public paths to make a through route. New access may be needed to areas of particular landscape interest if none exists already. For some scientific land it might be necessary to limit public access in order to preserve its character.
§ Dr. David ClarkTo ask the Chancellor of the Exchequer (1) how the heritage advisory agencies in England make available to the public the land management plans prepared by landowners on land exempted from inheritance tax; and if he will make a statement;
(2) how the heritage advisory agencies in Wales make available to the public the land management plans prepared by landowners on land exempted from inheritance tax; and if he will make a statement;
(3) how the heritage advisory agencies in Scotland make available to the public the land management plans prepared by landowners on land exempted from inheritance tax; and if he will make a statement.
§ Mr. DorrellThe heritage advisory agencies do not make the land management plans available to the public since they contain information which is covered by the normal rules ensuring taxpayers' confidentiality.