HC Deb 22 January 1997 vol 288 cc605-6W
Mr. Quentin Davies

To ask the Chancellor of the Exchequer what estimate he has made of the effect on revenue from inheritance tax of treating assets giving rise to schedule A income as assets comprised in a business carried on by the owner of those assets qualifying for business property relief. [11825]

Mr. Jack

The full year cost of extending inheritance tax business property relief to assets giving rise to schedule A income is tentatively estimated at £100 million.

Mr. Davies

To ask the Chancellor of the Exchequer what estimate he has made of the effect on(a) revenues from capital gains tax and (b) revenues from corporation tax on capital gains of treating assets giving rise to income taxable under schedule A as assets occupied and used for the purposes of a trade carried on by the recipient of the schedule A income. [11827]

Mr. Jack

The full year cost of treating assets giving rise to schedule A income as business assets qualifying for relief from capital gains tax and corporation tax on gains is tentatively estimated at £150 million.

Mr. Davies

To ask the Chancellor of the Exchequer what estimate he has made of the effect on(a) revenues from income tax and (b) revenues from corporation tax of taxing income currently taxed under schedule A as trading income taxed under case 1 of schedule D instead. [11826]

Mr. Jack

The estimated full year cost of taxing schedule A income as schedule D case 1 trading income is £50 million in respect of revenues from income tax and £250 million in respect of revenues from corporation tax charged on company incomes.