§ Mr. FlookTo ask the Chancellor of the Exchequer (1) what discussions he has had with the trust sector regarding the effect of income tax on pre-owned assets on trusts set up before December 2003; [164561]
(2) what assessment he has made of the ease with which tax avoidance schemes using trusts can be dismantled. [164781]
1357W
§ Dawn PrimaroloThe consultation process on pre-owned assets was open to all interested parties, and the Chancellor took account of all responses received when settling the details announced in his Budget. How readily any particular tax avoidance scheme using trusts can be dismantled will depend on the scheme; in the case of schemes involving pre-owned assets the Chancellor concluded, with the benefit of consultation, that dismantling them would often be difficult. Provision to address this is among the matters covered by his Budget announcements.