To ask the Chancellor of the Exchequer if he will make a statement on the Government's policy on offshore trusts, with particular reference to trusts which will be exempt from new legislation. [66447]

It is our policy to ensure that the UK tax liability of those who set up, or benefit from, offshore trusts, reflects the benefits which they, or their immediate family, may receive from the trust. In the last Finance Act we introduced a comprehensive and effective regime for taxing gains realised within offshore trusts. This is a difficult and complex area of the law, which we keep under continual review to ensure that the system operates as we intend.