We assume you are referring to a discretionary trust within the relevant property regime. We also assume that both settlors are still living and are interested in the trust under the settlements code set out in Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005), Chapter 5. The amount of income on which trustees are taxed is calculated according to the normal rules that apply under each chapter and part of ITTOIA 2005. Therefore, for example, trustees get relief for any expenses that are properly deductible according to the rules of the various sources (eg property income). They are also entitled to capital allowances where appropriate. Cases

See Practice Note: Relevant property trusts—the exit charge, in particular the section entitled 'Exit charge—exit within first ten years'. The rate of tax to be applied to an exit charge before the first ten-year anniversary is calculated by supposing that the settlor made a notional chargeable transfer and using the effective rate of tax which would apply in those circumstances. The effective rate is determined by: • the value of the property in this notional transfer, and • the amount of nil rate band (NRB) available In broad terms, the applicable rate of tax is found by totalling up the value of the relevant property at commencement of the settlement, together with other 'accountable' property, deducting any available NRB and then applying

Under the Working Time Regulations 1998 (WTR 1998), SI 1998/1833, a 'night worker' is one who: • 'as a normal course' works at least three hours of their daily working time during night time, or • is specified as a night worker in a collective agreement or workforce agreement ‘Night time' is, by default, the period between 11pm and 6am. This can be varied by a relevant agreement (eg a contract of employment) to be any period which: • is a period of not less than seven hours, and • includes the period between midnight and 5am A person works hours 'as a normal course' (without prejudice to the generality of that expression) if they work such hours

The IHT treatment of pre-2006 interest in possession trusts is the same as the now restricted collection of qualifying interest in possession (QIIP) trusts post-2006, ie all property to which the deceased was beneficially entitled prior to their death which is not otherwise excluded by the legislation forms part of the deceased’s estate (see sections 5 and 49 of the Inheritance Tax Act 1984). The life tenant of a pre-2006 interest in possession trust is treated for IHT purposes as the owner of the trust capital such that it is aggregated with their free estate and charged to IHT on their death. Once the IHT estate charge has been calculated, the trustees of the interest in possession trust will be responsible for paying that part of the tax that relates to

When calculating the inheritance tax (IHT) charge on death, the amount of the basic nil rate band (NRB) is the threshold applicable at the date of death, even where earlier transfers are included in the calculation. Transfers such as failed potentially exempt transfers (PETs) and the additional charge on chargeable lifetime transfers made in the seven years preceding death are set against the available NRB first. They are considered in chronological order, starting with the earliest first. See Practice Note: IHT—calculation of nil rate band and transferable NRB and the first example under the section titled ‘Nil rate band’: Example Alexei died on 1 August 2022, having made gifts totalling £150,000 to his daughter Renata

A trust corporation is defined in section 68(18) of the Trustee Act 1925, 'and means the public trustee or a corporation either: • appointed by the court in any particular case to be a trustee, or • entitled to act as custodian trustee by rules made under section 4(3) of the Public Trustee Act 1906 To qualify as a trust corporation, it must: • be constituted under UK (or EC) law • be empowered by its constitution

This Q&A assumes that the joint venture will take the form of a joint venture company (JVC) rather than a partnership or a contractual joint venture. In respect of the latter, we refer you to the following content which you may find useful: • Practice Note: Property Joint Ventures—general issues • Practice Note: Property Joint Ventures—choosing the right structure • Commentary: Joint venture agreement between a developer and financier: Encyclopaedia of Forms and Precedents [2699] • Commentary: Legal charge—joint venture—owner and developer—securing owner’s interest in development profit [2687] In order to form a joint venture, the parties will enter into a joint venture shareholders’ agreement which will establish the rights and obligations of the parties in relation to the joint venture, to ensure that the JVC and its business is established and run in accordance with the parties’ objectives and to set out procedures for dealing with any difficulties which may arise. The parties to a joint

A respondent must file an acknowledgment of service within seven days beginning with the date on which the divorce petition was served, assuming that service was effected within the jurisdiction. The computation of seven days (and time generally) is provided for by Family Procedure Rules 2010 (FPR 2010), SI 2010/2955, 2.9. A period of time expressed as a number of days must be computed as clear days. Where the specified period is seven days or less and includes a day which is not a business day, that day does not count. The Family Court Practice (the Red Book) at para 3.15[1] contains useful examples: if service is effected on

The governing, or applicable law is the law that governs a dispute between the parties. Generally, parties have the freedom to choose the applicable law. However, where they have failed to do so then the applicable law will be determined by the application of the relevant directive, convention or common law rules. For domestic disputes between parties based within the jurisdiction of England and Wales,

18–25 trusts—generally The special category of Age 18–25 trusts was introduced by Finance Act 2006 to offer some compensation for the loss of old style accumulation and maintenance (A&M) trusts. The A&M regime offered exemption from inheritance tax (IHT) charges on trusts in favour of children and young adults up to the age of 25. For further information, see Practice Note: Taxation of age 18–25 trusts—IHT. Tax of 18–25 trusts The tax status of the trust depends on the beneficiaries' entitlement to capital (consisting of the original property transferred into trust, replacements and additions to it, and capital gains) and income (consisting of the income earned on the trust capital). The income tax treatment of trusts also falls into two categories: • standard rate tax (bare trusts and all interests in possession), and • trust rate tax (discretionary and accumulation trusts) For further information, see Practice Note: Introductory guide to the taxation of trusts. How the beneficiary will be taxed on income

Section 19 of the Inheritance Tax Act 1984 provides that: ‘(1) Transfers of value made by a transferor in any one year are exempt to the extent that the values transferred by them (calculated as values on which no tax is chargeable) do not exceed £3,000. (2) Where those values fall short of £3,000, the amount by which they fall short shall, in relation

The answer to this question will depend on the interpretation of the contract between the parties, taking into account (in the usual way) all the terms, and the background circumstances known to the parties at the time. See, generally, Practice Note: Contract interpretation—the guiding principles. Subject to that caveat, if for example the contract incorporates the Standard Commercial Property Conditions (Third Edition-2018 revision), the position will be governed