Finance Act 1975

Protective trusts

18 (1) This paragraph applies to settled property held on trusts to the like effect as those specified in section 33(1) of the [1925 c. 19.] Trustee Act 1925 ; and in this paragraph " the principal beneficiary" and " the trust period " have the same meanings as in that section.

(2) Where this paragraph applies to any settled property—

(a) tax shall not be charged under paragraph 4(2) above on the coming to an end during the trust period of the principal beneficiary's interest in the property ; and

(b) a distribution payment made out of the settled property for the benefit of the principal beneficiary shall not be a capital distribution.

(3) Sub-paragraphs (5) to (9) of paragraph 17 above shall apply where this paragraph applies to any settled property as if the references to that paragraph were references to this paragraph and references to that paragraph ceasing to apply to the settled property included references to the coming to an end of the trust period.