HC Deb 12 July 1983 vol 45 c303W
Mr. Skeet

asked the Chancellor of the Exchequer what is the reason for the difference between the basic capital gains tax allowances for individuals and for beneficiaries of a trust.

Mr. Ridley

I assume that my hon. Friend is referring to the difference between the capital gains tax annual exemption for individuals, at present £5,300, and the similar exemption for trustees, at present £2,650. An individual who is a beneficiary under a trust, as well as having assets of his own, could benefit from the full amount of both exemptions in the same year; and if the exemption were the same amount in each case, individuals who were also trust beneficiaries could gain an unfair advantage. On the other hand, if there were no trust exemption at all, an individual all of whose assets were held in trust would be disadvantaged. The trust exemption is set at half the individual exemption in order to strike a balance between these possibilities.

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