As a matter of general English trust law, trust income must bear all ordinary outgoings of a recurrent nature, such as rates and taxes, and interest on charges and incumbrances, whereas trust capital must bear all costs, charges and expenses incurred for the benefit of the whole estate. See Carver v Duncan (Inspector of Taxes); Bosanquet v Allet (Inspector of Taxes). The trust instrument can modify this basic principle. It is important to note that the characterisation of an expense for trust law purposes may not guarantee its deductibility for tax purposes, depending on the fiscal regime to which the trust is subject. For example, English tax