§ Mr. Neil HamiltonTo ask the Chancellor of the Exchequer if he will estimate the first year and full year cost of abolishing the additional rate of income tax on trusts.
§ Mr. Norman LamontThe direct revenue cost of abolishing the additional rate of income tax on trusts is estimated to be about £10 million in the first year and about £50 million in a full year at forecast 1988–89 levels of income. These estimates do not allow for any possible behavioural effects nor any consequential change in the liability of beneficiaries to tax on distributed income.