§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer (1) what arrangements exist for the enforcement of access to(a) heritage land, (b) property, (c) works of art and (d) chattels in respect of items which have been the subject of exemption from capital transfer tax; [37498]
(2) what arrangements exist for the policing of assets and payment of capital transfer tax in the case of assets which have been the subject of heritage status capital transfer tax exemption and which are subsequently sold by the beneficiaries of legacies or their trusts;[37499]
(3) what arrangements are made for access to (a) heritage land, (b) property, (c) works of art and (d) chattels by the general public where such access forms part of the agreement for exemption of such items from capital transfer tax. [37497]
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§ Dawn PrimaroloOwners' compliance with their undertakings relating to tax exempt land and buildings is regularly monitored on behalf of the Inland Revenue by the appropriate heritage advisory agency. As part of this monitoring, owners have to submit annual reports which include matters regarding the provision of public access, and there are on-site inspections every five years. In addition, the Inland Revenue separately review all cases at five yearly intervals.
Public access and other conditions relating to exempt works of art and chattels are monitored directly by the Inland Revenue. Each case is reviewed every five years and there is an annual selective audit of objects to which public access is only by prior appointment.
Any material failure by an owner to comply with the undertakings results in a tax charge on the current value of the asset.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer (1) what is the definition of heritage land for the purposes of capital transfer tax exemption; [37490]
(2) what is the definition of heritage property for the purposes of capital transfer tax exemption; [37491]
(3) what is the definition of heritage works of art for the purpose of capital transfer tax exemption; [37492]
(4) what is the definition of heritage chattels for the purpose of capital transfer tax exemption. [37493]
§ Dawn PrimaroloUnder existing law (section 31 Inheritance Tax Act 1984) conditional exemption may apply to the following assets
pictures, prints, books, manuscripts, works of art or scientific collections of national, scientific, historic or artistic interest;land of outstanding scenic or historic or scientific interest;building of outstanding historic or architectural interest, and any land essential for the protection of their character and amenities;any objects historically associated with a qualifying building.A number of changes to the exemption scheme were announced in the recent Budget. An Inland Revenue press release on Budget Day set out the proposed changes.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer if he will list the Inland Revenue's arrangements for valuing(a) land, (b) property, (c) works of art and (d) chattels for capital transfer tax purposes. [37494]
§ Dawn PrimaroloThe value of an asset is not a relevant factor in deciding a claim for conditional exemption from inheritance tax (or its predecessor, capital transfer tax). When an asset ceases to be conditionally exempt, tax is charged on its market value at that time. For this purpose, the Valuation Office Agency advises on the value of land and buildings, and the Heritage Section of the Capital Taxes Office deals with valuation of works of art and other chattels.
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer what is the total value of the exemption to capital transfer tax in the case of(a) heritage land, (b) property, (c) works of art and (d) chattels in each of the last five years.[37495]
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§ Dawn PrimaroloThe information is not available in the form requested. The estimated cost to the Exchequer of conditional exemption from inheritance tax (and its predecessor, capital transfer tax) is as follows:
£ million Amount of relief Year Land & Buildings Chattels1 1992–93 2negligible 40 1993–94 2negligible 40 1994–95 2negligible 55 1995–96 5 25 1996–97 5 30 1Includes works of art 2 Negligible means less than £3 million
§ Mr. Campbell-SavoursTo ask the Chancellor of the Exchequer when he intends to review the arrangements for the exemption from capital transfer tax of(a) heritage land, (b) property and (c) chattels; and if he will make a statement. [37496]
§ Dawn PrimaroloIn his recent Budget my right hon. Friend the Chancellor of the Exchequer announced changes to strengthen the conditions of inheritance tax (and its predecessor capital transfer tax) exemptions for heritage assets. An Inland Revenue press release on Budget Day set out the proposed changes.