I am informed by the Revenue Commissioners that the expected yield in 1994 from increasing the initial charge from 3 per cent to 6 per cent is £100,000 and £300,000 in a full year. In addition to this initial charge, liable trusts are also required to pay 1 per cent per annum thereafter.
The number of discretionary trusts expected to come within the charge to Discretionary Trust Tax (both initial and annual) in 1994 is 350. For a trust to become liable to Discretionary Trust Tax it is necessary that the disponer be deceased, and that all principal objects be 21 years or over. There are a number of specific exemptions provided in section 108 of the Finance Act, 1984 (for example, trusts created for charitable purposes, and trusts created by pension schemes).
Statistics are not recorded in such a manner as would enable the information requested by the Deputy regarding the status and purpose of such trusts to be provided.