§ Lord Macaulay of Bragarasked Her Majesty's Government:
(a) What expenditure is acceptable before the closure of a typical trust fund of the type used by amateur athletes; (b) what are the tax implications 60WA of the operation of such funds; and (c) whether they propose to allow artists, writers and actors to operate such trust funds.
§ The Minister of State, Department of Transport (Lord Brabazon of Tara)Trust funds of the type used by amateur athletes are subject to the normal tax rules which apply to trusts generally. The kinds of expenditure which may be made by the trustees of such funds are determined by the terms of the trusts and by the rules of the bodies which govern amateur athletics, and not by the tax rules. An athlete who is carrying on a trade, profession or vocation is taxed on his or her earnings from athletics and athletics-related activities even though the money is paid into one of these trusts. And the existence of a trust is not material in establishing the extent to which the athlete can get a tax deduction for his or her expenses.
The tax rules do not prevent artists, writers and actors from operating similar funds if they wish to do so.