HC Deb 17 October 1975 vol 897 cc832-3W
Mr. Noble

asked the Chancellor of the Exchequer what proposals he has to subject to tax items of wealth which are currently exempt, particularly non-dutiable trusts and surviving spouse settlement which the Royal Commission on the Distribution of Income and Wealth, in Command Paper No. 6171, estimated to amount in 1973 to £6 million and £2½ million, respectively.

Mr. Joel Barnett

The Government's proposals to charge property held in trust to wealth tax were contained in paragraphs 16 to 24 of the Green Paper on Wealth Tax (Cmnd. 5704). My right hon. Friend will reach his decisions on the matter in the light of the report of the Select Committee on Wealth Tax. The Finance Act 1975 contains provisions which impose capital transfer tax on discretionary trusts and provide for a fundamental change from the old estate duty rules in the treatment of property passing to a surviving spouse.