Commentary

I5.1226 Settlor's interest in a settlement

IHT, trusts and estates

I5.1226 Settlor's interest in a settlement

I5.1226 Settlor's interest in a settlement

Settlor's interest for CGT purposes

A settlor has an interest in a settlement if1:

  1.  

    •     any settled property or income which originates from the settlor (see I5.1227) is, or will or may become payable to, or applicable for the benefit of, a defined person (see below) in any circumstances whatever (see below), or

  2.  

    •     any defined person enjoys a benefit directly or indirectly from any settlement property or income which originates from the settlor

There are transitional rules for settlements created before 17 March 19982.

Defined person

A 'defined person' is any of the following3:

  1.  

    •     the settlor

  2.  

    •     the settlor's spouse or civil partner

  3.  

    •     any child (of any age) of the settlor or the settlor's spouse or civil partner

  4.  

    •     any spouse or civil partner of any such child

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