§ Mr. Michael McGuireasked the Chancellor of the Exchequer if he will give further consideration to exempting from liability to pay income tax on the income from a trust fund, the parents or guardians of a child or children for whose benefit a trust fund was set up, especially in those cases where the trust fund or funds consists entirely of monies donated by the public usually following some accident or incident; and if he will make a statement.
§ Mr. Robert SheldonIn these cases the income which is taxed is income of the trustees or the children—depending on the terms of the trust—and not of the parents or guardians. I have noted my hon. Friend's suggestion that the income of a trust fund set up for the benefit of a child or children should be exempt from income tax in the particular case of a fund consisting of moneys donated by the public for the benefit of a child injured in an accident or similar incident.