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Clause 49 - Gifts to the nation

Part of Finance Bill – in a Public Bill Committee at 3:30 pm on 14th June 2012.

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Photo of Chloe Smith Chloe Smith The Economic Secretary to the Treasury 3:30 pm, 14th June 2012

The Treasury, in the care of this Front-Bench team and that of the Chancellor and the Chief Secretary to the Treasury, is delighted to use consultation where it matters and to listen when it is told things. I do not know whether the hon. Lady thinks that pasties are pre-eminent objects, but I shall return to what is in front of us today in order to conclude the Finance Bill with enough time to spare.

I have answered the points on estate duty in broad-brush terms, but let me put some numbers to it and draw out the comparison with inheritance tax to which I have just referred. The first 40% of the estate duty charge will be waived, which is exactly like the inheritance conditional exemption charge that has a flat rate of 40%. Any remaining estate duty, if any, would need to be paid. The donor would, however, receive a 30% tax reduction, which could be used to offset against income tax and capital gains tax liabilities. I hope that that answers the hon. Lady’s question and is sufficient to ensure the clause and schedule will be passed.