Schedule 1
Finance Bill
4:45 pm
Jane Kennedy (Financial Secretary, HM Treasury; Liverpool, Wavertree, Labour)
No new circumstances are being introduced as part of these changes, so no further people will be caught in the way that the hon. Gentleman appears to fear they might be. The new starting rate for savings protects the position of individuals and does not deny anyone a 10 per cent. rate of income tax. In other words, nothing is broadly changing the arrangements that are already in place. He asked about the position of trustees and whether the starting rate for savings was not available for trusts. The starting rate for savings is for individuals. Trustees are not individuals, so the rate for trusts are unchanged, and that is covered by section 11 of the Income Tax Act. He asked me about the rate for trustees, and I can confirm that 20 per cent. is the rate.
Amendment No. 12 would include an additional provision for the starting rate for savings.