As usual there was a host of anti-avoidance measures in the Pre-Budget Report. These included an increase in the tax rate on trusts to 40% from 6 April 2004 and, from 10 December 2003, the end of capital gains tax relief for gifts to most trusts in which the settlor has an interest at the time of the gift or within the following six tax years. Such trusts are widely used to defer or avoid tax. VAT avoidance also featured strongly, with consultation on new rules for VAT groups, stronger powers for Customs to challenge partial exemption calculations and a further 450 VAT staff to be deployed on enforcing VAT payment.