Commentary

I5.1135 Meaning of 'capital sum' treated as income

IHT, trusts and estates

I5.1135 Meaning of 'capital sum' treated as income

Capital sums treated as income of the settlor

I5.1135 Meaning of 'capital sum' treated as income

For the purpose of these provisions, a 'capital sum' means1:

  1.  

    (a)     any sum paid by way of loan or repayment of a loan (see I5.1138), and

  2.  

    (b)     any other sum paid otherwise than as income, and which is not paid for full consideration in money or money's worth

A sum is not a capital sum for this purpose if it could only have been paid to the settlor in the event of2:

  1.  

    (i)     the bankruptcy of a person who is or may become beneficially entitled to the property concerned

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