§ Mr. Bright
asked the Chancellor of the Exchequer whether he intends to withdraw the present limited exemption from income tax of interest on ordinary deposits with trustee savings banks.
§ Mr. Lawson
The exemption should cease to apply to interest in respect of any period after 20 November 1979, on which date further changes in the structure of TSBs take place to continue their development towards full banking status. I am advised that, as the law stands, there are grounds for believing that the exemption will come automatically to an end on that day, but to put the matter beyond doubt I propose to make an appropriate provision in the 1980 Finance Bill.