§ Mr. Frank Allaunasked the Chancellor of the Exchequer what was the nature of his reply to Salford city council regarding the state of the law as shown by the recent House of Lords decision relating to steps which would minimise the incidents of income tax payable in respect of income arising from or associated with trusts.
§ Mr. Peter ReesA reply is being sent to the city council's letter. My right hon. and learned Friend the Chancellor of the Exchequer has already announced that a review is being undertaken of the problems arising from the recent House of Lords decision in the Vestey group of cases concerning income tax and payments out of foreign trusts, and that legislation will be introduced to deal with these problems when the right answers have been found.