PART III SETTLED PROPERTY

C1C2C3C4CHAPTER III SETTLEMENTS WITHOUT INTERESTS IN POSSESSION F2, AND CERTAIN SETTLEMENTS IN WHICH INTERESTS IN POSSESSION SUBSIST

Annotations:
Amendments (Textual)
F2

Words in Pt. 3 Ch. 3 heading added (22.3.2006) by Finance Act 2006 (c. 25), s. 156, Sch. 20 para. 20(5)

Modifications etc. (not altering text)
C1

See Finance Act 1990 s. 126—exemption for pools payments to trustees for football ground improvements in respect of events on or after 6April 1990.

C4

Part III Chapter III (ss.58-85) excluded by Finance Act 1991 (c.31, SIF 63:1), s. 121(4).

Pt. III Ch. III (ss. 58-85) restricted (3.5.1994) by 1994 c. 9, s. 248

Special cases—charges to tax

F171ATrusts for bereaved minors

1

This section applies to settled property (including property settled before 22nd March 2006) if—

a

it is held on statutory trusts for the benefit of a bereaved minor under sections 46 and 47(1) of the Administration of Estates Act 1925 (succession on intestacy and statutory trusts in favour of issue of intestate), or

b

it is held on trusts for the benefit of a bereaved minor and subsection (2) below applies to the trusts,

but this section does not apply to property in which a disabled person's interest subsists.

2

This subsection applies to trusts—

a

established under the will of a deceased parent of the bereaved minor, or

b

established under the Criminal Injuries Compensation Scheme,

which secure that the conditions in subsection (3) below are met.

3

Those conditions are—

a

that the bereaved minor, if he has not done so before attaining the age of 18, will on attaining that age become absolutely entitled to—

i

the settled property,

ii

any income arising from it, and

iii

any income that has arisen from the property held on the trusts for his benefit and been accumulated before that time,

b

that, for so long as the bereaved minor is living and under the age of 18, if any of the settled property is applied for the benefit of a beneficiary, it is applied for the benefit of the bereaved minor, and

c

that, for so long as the bereaved minor is living and under the age of 18, either—

i

the bereaved minor is entitled to all of the income (if there is any) arising from any of the settled property, or

ii

no such income may be applied for the benefit of any other person.

4

Trusts such as are mentioned in paragraph (a) or (b) of subsection (2) above are not to be treated as failing to secure that the conditions in subsection (3) above are met by reason only of—

a

the trustees' having the powers conferred by section 32 of the Trustee Act 1925 (powers of advancement),

b

the trustees' having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by proviso (a) of subsection (1) of that section,

c

the trustees' having the powers conferred by section 33 of the Trustee Act (Northern Ireland) 1958 (corresponding provision for Northern Ireland),

d

the trustees' having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by subsection (1)(a) of that section, or

e

the trustees' having powers to the like effect as the powers mentioned in any of paragraphs (a) to (d) above.

5

In this section “the Criminal Injuries Compensation Scheme” means—

a

the schemes established by arrangements made under the Criminal Injuries Compensation Act 1995,

b

arrangements made by the Secretary of State for compensation for criminal injuries in operation before the commencement of those schemes, and

c

the scheme established under the Criminal Injuries Compensation (Northern Ireland) Order 2002.

6

The preceding provisions of this section apply in relation to Scotland as if, in subsection (2) above, before “which” there were inserted the purposes of.