§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
What is their estimate of the level to which the threshold for payment of inheritance tax could be raised, with no net loss of revenue to the Exchequer in each case, if the marginal tax rate were simultaneously raised to 50 per cent on each estate's taxable value band:
- (a) over £500,000; or
- (b) over £750,000; or
- (c) over £1 million. [HL1388]
§ The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord McIntosh of Haringey)With the proposed regimes above, the nil rate band inheritance tax threshold could be raised to (a) £323,000; (b) £311,000 and (c) £302,000 while leaving yield roughly unchanged. These estimates ignore behavioural effects, which could be expected to reduce the yield from the higher marginal rate of tax.