§ Lord Monsonasked 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 ArdbrecknishMy 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.