Clause 84 - Charge to income tax by reference to enjoyment of property previously owned
Finance Bill
11:00 am
Mr Michael Jack (Fylde, Conservative)
I want to concentrate on the figures. It is difficult to accept that, when the Treasury asked the Revenue for recommendations to deal with the schemes, a figure concerning the amount of tax that was at risk was not given with some accuracy. Perhaps I am wrong mathematically, but if there are 30,000 schemes at £500,000, that is £15 million of assets and, at 40 per cent. tax, £600 million. [Hon. Members: ''Billion.''] Is that the right amount? Perhaps we can have an answer.
If research was undertaken, will the Paymaster General explain the relationship between the high marginal rate of tax in inheritance tax and the incidence of the schemes? On the contrary, if we lowered the rate of tax and got away with exemptions, would that be another way of tackling the problem?