§ Mr. CousinsTo ask the Chancellor of the Exchequer what estimate he has made of the loss of capital gains tax revenue by the use of offshore trusts; and what steps he is taking to investigate the extent of this loss and to correct it.
§ Mr. DorrellI remind the hon. Member that in 1991 the Government introduced a comprehensive system for the taxation of those setting up, and receiving benefits from, offshore trusts. In introducing these measures in his Budget Statement, the Chancellor indicated that this was designed to prevent a revenue loss of up to £100 million in a full year. These measures were welcomed by the Opposition. The Government will keep these provisions under review to ensure that the objective of a fair and comprehensive system of taxation in this complex area continues to be met.