HC Deb 11 February 1941 vol 368 cc1234-5W
Sir J. Mellor

asked the Chancellor of the Exchequer whether an individual who holds £1,000 3 per cent. Defence Bonds for his exclusive benefit is permitted at the same time to enjoy a beneficial interest, acquired otherwise than by inheritance, in a further £1,000 of these bonds held by a trustee?

Sir K. Wood

When the interest of a beneficiary in a trust holding of 3 per cent. Defence Bonds is an absolute interest, the trust holding and his personal holding must not together exceed £1,000 unless the excess is due to inheritance. As regards the purchase of 3 per cent. Defence Bonds by trustees on behalf of trusts in which the beneficiaries' interests are not absolute I would refer my hon. Friend to the Post Office Register Provisional Regulations and the Post Office Register (Trustee Savings Banks) Provisional Regulations, 1940.

Sir J. Mellor

asked the Chancellor of the Exchequer whether an individual who holds £1,00 3 per cent. Defence Bonds is permitted at the same time to hold as trustee a further £1,000 of these bonds in which he has no beneficial interest?

Sir K. Wood

Under the terms of the Regulations governing the matter, no account is taken in calculating a person's holding of 3 per cent. Defence Bonds for the purposes of the maximum limit imposed by the prospectus, of any bonds held by him as a trustee in which he has no interest other than as trustee. Only £1,000 of bonds may be held for any one trust. When the beneficiary in a trust has an absolute beneficial interest in the trust, any bonds held by the trust on his behalf must be included in the calculation of his total holding for the purpose of the maximum limit of £1,000.