Clause 29 - Special rates of tax applicable to trusts
Finance Bill
10:45 am
Mr Howard Flight (Shadow Chief Secretary To the Treasury, Economic Affairs; Arundel and South Downs, Conservative)
The Paymaster General has indeed responded to our main concern about the commitment to backdate. On the more technical aspects of schedule 4 and section 677, in a domestic context, I trust that the Minister understands the point that I was making.
I was under the impression that taxation of income from non-UK offshore trusts was done on a look-through basis under other legislation, and that the issue was therefore thoroughly dealt with elsewhere. She is effectively saying that that is not the case, and that there is a reliance on something in section 677. If that is so, I accept her argument. My point was based on the understanding that the section was really about domestic trusts, and did not touch on offshore trusts. On the basis that the Minister knows her stuff—I am sure that she does—I accept the argument that we cannot get rid of section 677 if it is relevant to the offshore territory. I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 29 ordered to stand part of the Bill.
Schedule 4 agreed to.