§ Lord Monson
asked Her Majesty's Government:
Whether they intend to continue pegging the rate of tax applicable to discretionary and accumulation-and-maintenance trusts at 34 per cent., rather than the previous formula of 10 per cent. above the standard rate of income tax currently prevailing.
§ Lord Mackay of Ardbrecknish
My right honourable and learned friend the Chancellor proposed in his Budget that the rate applicable to trusts should remain unchanged at 34 per cent. in 1997-98.
He will review the rate for subsequent years in the context of his plans for income tax rates as a whole.