§ The Chancellor of the Exchequer (Mr. James Callaghan)There is, however, a special case for relief for unit trusts and investment trusts. It would not be right, in my view, to exempt the trusts from the tax, and tax only the shareholder, for this would mean that the taxation of his gains would be unduly deferred compared with those of an investor who invests in securities directly. I propose, however, that the net capital gains on which tax has been paid by the trusts should be deducted from the chargeable gain of the shareholder.