Commentary

66 Powers of appointment in relation to income tax

POWERS OF APPOINTMENT vol 33
| Commentary

66 Powers of appointment in relation to income tax

| Commentary

L: INCOME TAX, CAPITAL GAINS TAX AND INHERITANCE TAX

66 Powers of appointment in relation to income tax

The exercise of a power of appointment, or a surrender of an interest with a view to an appointment being made, is a disposition and, accordingly, may be a settlement for income tax purposes1. Except in the case of trustees’ powers, the appointor, or person making the surrender, is the settlor2.

Where, therefore, the appointor retains an interest in the appointed property, any income arising from such property during the life of the appointor is treated as income of the appointor and not as

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