§ Mr. MandelsonTo ask the Chancellor of the Exchequer what estimate has been made of the direct revenue effect in the years 1993–94 and 1994–95 of the announcements(a) that unit trust managers will be allowed to stream income which they receive and pay to corporate unit holders as between franked and unfranked income and (b) that there will be legislation to allow unit trusts to pay interest and other unfranked income gross to non-UK residents.
§ Mr. DorrellThe estimated costs of the proposals are in the table.
449W
£ million 1993–94 1994–95 (a) Unit trust dividends received by companies to be divided into franked and unfranked components 10 25 (b) Distributions out of underlying interest income of unit trusts to be paid gross to certain non-UK residents nil negligible Note: The position regarding unfranked income other than interest paid to non-UK residents is not yet settled.