Trustee Act 2000

2000 CHAPTER 29

An Act to amend the law relating to trustees and persons having the investment powers of trustees; and for connected purposes.

[23rd November 2000]

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—

Modifications etc. (not altering text)

C1 Act power to apply conferred (26.11.2008) by Pensions Act 2008 (c. 30), ss. 68(2), 149(2)

C2 Act applied (5.7.2010) by The National Employment Savings Trust Order 2010 (S.I. 2010/917), arts. 1(3), 16

Part I E+W The Duty of Care

1 The duty of care. E+W

(1) Whenever the duty under this subsection applies to a trustee, he must exercise such care and skill as is reasonable in the circumstances, having regard in particular—

(a) to any special knowledge or experience that he has or holds himself out as having, and

(b) if he acts as trustee in the course of a business or profession, to any special knowledge or experience that it is reasonable to expect of a person acting in the course of that kind of business or profession.

(2) In this Act the duty under subsection (1) is called “the duty of care”.

Modifications etc. (not altering text)

C3 S. 1(1) applied by 1993 c. 10, s. 73F(5) (as inserted (27.2.2007) by Charities Act 2006 (c. 50), ss. 39, 79(2); S.I. 2007/309, art. 2, Sch.)

C4 S. 1(1) applied by 1993 c. 10, s. 73B(2) (as inserted (18.3.2008) by Charities Act 2006 (c. 50), ss. 36, 79(2) (with Sch. 10 para. 12); S.I. 2008/751, art. 2, Sch.)

2 Application of duty of care. E+W

Schedule 1 makes provision about when the duty of care applies to a trustee.

Part II E+W Investment

3 General power of investment. E+W

(1) Subject to the provisions of this Part, a trustee may make any kind of investment that he could make if he were absolutely entitled to the assets of the trust.

(2) In this Act the power under subsection (1) is called “the general power of investment”.

(3) The general power of investment does not permit a trustee to make investments in land other than in loans secured on land (but see also section 8).

(4) A person invests in a loan secured on land if he has rights under any contract under which—

(a) one person provides another with credit, and

(b) the obligation of the borrower to repay is secured on land.

(5) “Credit” includes any cash loan or other financial accommodation.

(6) “Cash” includes money in any form.

4 Standard investment criteria. E+W

(1) In exercising any power of investment, whether arising under this Part or otherwise, a trustee must have regard to the standard investment criteria.

(2) A trustee must from time to time review the investments of the trust and consider whether, having regard to the standard investment criteria, they should be varied.

(3) The standard investment criteria, in relation to a trust, are—

(a) the suitability to the trust of investments of the same kind as any particular investment proposed to be made or retained and of that particular investment as an investment of that kind, and

(b) the need for diversification of investments of the trust, in so far as is appropriate to the circumstances of the trust.

[F1 (4) This section has effect subject to section 292C(6) of the Charities Act 2011 (which disapplies the duties under this section in cases where they would otherwise apply in relation to a social investment within the meaning of Part 14A of that Act).]

Textual Amendments

F1 S. 4(4) inserted (31.7.2016) by Charities (Protection and Social Investment) Act 2016 (c. 4), ss. 15(3), 17(4); S.I. 2016/815, reg. 2(k)

Modifications etc. (not altering text)

C5 Ss. 4, 5 applied by 1956 c. lxvii s. 5(1A) (as substituted (10.3.2015) by The Charities (People's Dispensary for Sick Animals) Order 2015 (S.I. 2015/198), art. 1, Sch. Scheme para. 4)

C6 S. 4 excluded by 2011 c. 25, s. 292C(6) (as inserted (31.7.2016) by Charities (Protection and Social Investment) Act 2016 (c. 4), ss. 15(1), 17(4); S.I. 2016/815, reg. 2(k))

C7 S. 4 applied (with modifications) by 1961 c. xxxviii, s. 9(1) (as substituted (1.9.2017) by The Charities (Shakespeare Birthplace Trust) Order 2017 (S.I. 2017/783), art. 1, Sch. Scheme para. 5)

5 Advice. E+W

(1) Before exercising any power of investment, whether arising under this Part or otherwise, a trustee must (unless the exception applies) obtain and consider proper advice about the way in which, having regard to the standard investment criteria, the power should be exercised.

(2) When reviewing the investments of the trust, a trustee must (unless the exception applies) obtain and consider proper advice about whether, having regard to the standard investment criteria, the investments should be varied.

(3) The exception is that a trustee need not obtain such advice if he reasonably concludes that in all the circumstances it is unnecessary or inappropriate to do so.

(4) Proper advice is the advice of a person who is reasonably believed by the trustee to be qualified to give it by his ability in and practical experience of financial and other matters relating to the proposed investment.

[F2 (5) This section has effect subject to section 292C(6) of the Charities Act 2011 (which disapplies the duties under this section in cases where they would otherwise apply in relation to a social investment within the meaning of Part 14A of that Act).]

Textual Amendments

F2 S. 5(5) inserted (31.7.2016) by Charities (Protection and Social Investment) Act 2016 (c. 4), ss. 15(4), 17(4); S.I. 2016/815, reg. 2(k)

Modifications etc. (not altering text)

C5 Ss. 4, 5 applied by 1956 c. lxvii s. 5(1A) (as substituted (10.3.2015) by The Charities (People's Dispensary for Sick Animals) Order 2015 (S.I. 2015/198), art. 1, Sch. Scheme para. 4)

C8 S. 5 excluded by 2011 c. 25, s. 292C(6) (as inserted (31.7.2016) by Charities (Protection and Social Investment) Act 2016 (c. 4), ss. 15(1), 17(4); S.I. 2016/815, reg. 2(k))

C9 S. 5 applied (with modifications) by 1961 c. xxxviii, s. 9(1) (as substituted (1.9.2017) by The Charities (Shakespeare Birthplace Trust) Order 2017 (S.I. 2017/783), art. 1, Sch. Scheme para. 5)

6 Restriction or exclusion of this Part etc. E+W

(1) The general power of investment is—

(a) in addition to powers conferred on trustees otherwise than by this Act, but

(b) subject to any restriction or exclusion imposed by the trust instrument or by any enactment or any provision of subordinate legislation.

(2) For the purposes of this Act, an enactment or a provision of subordinate legislation is not to be regarded as being, or as being part of, a trust instrument.

(3) In this Act “subordinate legislation” has the same meaning as in the M1 Interpretation Act 1978.

Marginal Citations

M1 1978 c. 30.

7 Existing trusts. E+W

(1) This Part applies in relation to trusts whether created before or after its commencement.

(2) No provision relating to the powers of a trustee contained in a trust instrument made before 3rd August 1961 is to be treated (for the purposes of section 6(1)(b)) as restricting or excluding the general power of investment.

(3) A provision contained in a trust instrument made before the commencement of this Part which—

(a) has effect under section 3(2) of the M2 Trustee Investments Act 1961 as a power to invest under that Act, or

(b) confers power to invest under that Act,

is to be treated as conferring the general power of investment on a trustee.

Marginal Citations

M2 1961 c. 62.

Part III E+W Acquisition of Land

8 Power to acquire freehold and leasehold land. E+W

(1) A trustee may acquire freehold or leasehold land in the United Kingdom—

(a) as an investment,

(b) for occupation by a beneficiary, or

(c) for any other reason.

(2) “Freehold or leasehold land” means—

(a) in relation to England and Wales, a legal estate in land,

(b) in relation to Scotland—

(i) the estate or interest of the proprietor of the dominium utile or, in the case of land not held on feudal tenure, the estate or interest of the owner, or

(ii) a tenancy, and

(c) in relation to Northern Ireland, a legal estate in land, including land held under a fee farm grant.

(3) For the purpose of exercising his functions as a trustee, a trustee who acquires land under this section has all the powers of an absolute owner in relation to the land.

9 Restriction or exclusion of this Part etc. E+W

The powers conferred by this Part are—

(a) in addition to powers conferred on trustees otherwise than by this Part, but

(b) subject to any restriction or exclusion imposed by the trust instrument or by any enactment or any provision of subordinate legislation.

10 Existing trusts. E+W

(1) This Part does not apply in relation to—

(a) a trust of property which consists of or includes land which (despite section 2 of the M3 Trusts of Land and Appointment of Trustees Act 1996) is settled land, or

(b) a trust to which the M4 Universities and College Estates Act 1925 applies.

(2) Subject to subsection (1), this Part applies in relation to trusts whether created before or after its commencement.

Marginal Citations

M3 1996 c. 47.

M4 1925 c. 24.

Part IV E+W Agents, nominees and custodians

Modifications etc. (not altering text)

C10 Pt. 4 applied in part (with modifications) (2.1.2013) by The Charitable Incorporated Organisations (General) Regulations 2012 (S.I. 2012/3012), regs. 1, 33

C11 Pt. 4 applied (with modifications) (in part) by 1956 c. lxvii, s. 5(1B)-(1D) (as substituted (10.3.2015) by The Charities (People's Dispensary for Sick Animals) Order 2015 (S.I. 2015/198), art. 1, Sch. Scheme para. 4)

C12 Pt. 4 applied (with modifications) by 1961 c. xxxviii, s. 9(2)(3)(a)(4) (as substituted (1.9.2017) by The Charities (Shakespeare Birthplace Trust) Order 2017 (S.I. 2017/783), art. 1, Sch. Scheme para. 5)

Agents E+W

11 Power to employ agents. E+W

(1) Subject to the provisions of this Part, the trustees of a trust may authorise any person to exercise any or all of their delegable functions as their agent.

(2) In the case of a trust other than a charitable trust, the trustees’ delegable functions consist of any function other than—

(a) any function relating to whether or in what way any assets of the trust should be distributed,

(b) any power to decide whether any fees or other payment due to be made out of the trust funds should be made out of income or capital,

(c) any power to appoint a person to be a trustee of the trust, or

(d) any power conferred by any other enactment or the trust instrument which permits the trustees to delegate any of their functions or to appoint a person to act as a nominee or custodian.

(3) In the case of a charitable trust, the trustees’ delegable functions are—

(a) any function consisting of carrying out a decision that the trustees have taken;

(b) any function relating to the investment of assets subject to the trust (including, in the case of land held as an investment, managing the land and creating or disposing of an interest in the land);

(c) any function relating to the raising of funds for the trust otherwise than by means of profits of a trade which is an integral part of carrying out the trust’s charitable purpose;

(d) any other function prescribed by an order made by the Secretary of State.

(4) For the purposes of subsection (3)(c) a trade is an integral part of carrying out a trust’s charitable purpose if, whether carried on in the United Kingdom or elsewhere, the profits are applied solely to the purposes of the trust and either—

(a) the trade is exercised in the course of the actual carrying out of a primary purpose of the trust, or

(b) the work in connection with the trade is mainly carried out by beneficiaries of the trust.

(5) The power to make an order under subsection (3)(d) is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

12 Persons who may act as agents. E+W

(1) Subject to subsection (2), the persons whom the trustees may under section 11 authorise to exercise functions as their agent include one or more of their number.

(2) The trustees may not authorise two (or more) persons to exercise the same function unless they are to exercise the function jointly.

(3) The trustees may not under section 11 authorise a beneficiary to exercise any function as their agent (even if the beneficiary is also a trustee).

(4) The trustees may under section 11 authorise a person to exercise functions as their agent even though he is also appointed to act as their nominee or custodian (whether under section 16, 17 or 18 or any other power).

13 Linked functions etc. E+W

(1) Subject to subsections (2) and (5), a person who is authorised under section 11 to exercise a function is (whatever the terms of the agency) subject to any specific duties or restrictions attached to the function.

For example, a person who is authorised under section 11 to exercise the general power of investment is subject to the duties under section 4 in relation to that power.

(2) A person who is authorised under section 11 to exercise a power which is subject to a requirement to obtain advice is not subject to the requirement if he is the kind of person from whom it would have been proper for the trustees, in compliance with the requirement, to obtain advice.

(3) Subsections (4) and (5) apply to a trust to which section 11(1) of the M5 Trusts of Land and Appointment of Trustees Act 1996 (duties to consult beneficiaries and give effect to their wishes) applies.

(4) The trustees may not under section 11 authorise a person to exercise any of their functions on terms that prevent them from complying with section 11(1) of the 1996 Act.

(5) A person who is authorised under section 11 to exercise any function relating to land subject to the trust is not subject to section 11(1) of the 1996 Act.

Marginal Citations

M5 1996 c. 47.

14 Terms of agency. E+W

(1) Subject to subsection (2) and sections 15(2) and 29 to 32, the trustees may authorise a person to exercise functions as their agent on such terms as to remuneration and other matters as they may determine.

(2) The trustees may not authorise a person to exercise functions as their agent on any of the terms mentioned in subsection (3) unless it is reasonably necessary for them to do so.

(3) The terms are—

(a) a term permitting the agent to appoint a substitute;

(b) a term restricting the liability of the agent or his substitute to the trustees or any beneficiary;

(c) a term permitting the agent to act in circumstances capable of giving rise to a conflict of interest.

15 Asset management: special restrictions. E+W

(1) The trustees may not authorise a person to exercise any of their asset management functions as their agent except by an agreement which is in or evidenced in writing.

(2) The trustees may not authorise a person to exercise any of their asset management functions as their agent unless—

(a) they have prepared a statement that gives guidance as to how the functions should be exercised (“a policy statement”), and

(b) the agreement under which the agent is to act includes a term to the effect that he will secure compliance with—

(i) the policy statement, or

(ii) if the policy statement is revised or replaced under section 22, the revised or replacement policy statement.

(3) The trustees must formulate any guidance given in the policy statement with a view to ensuring that the functions will be exercised in the best interests of the trust.

(4) The policy statement must be in or evidenced in writing.

(5) The asset management functions of trustees are their functions relating to—

(a) the investment of assets subject to the trust,

(b) the acquisition of property which is to be subject to the trust, and

(c) managing property which is subject to the trust and disposing of, or creating or disposing of an interest in, such property.

Nominees and custodians E+W

16 Power to appoint nominees. E+W

(1) Subject to the provisions of this Part, the trustees of a trust may—

(a) appoint a person to act as their nominee in relation to such of the assets of the trust as they determine (other than settled land), and

(b) take such steps as are necessary to secure that those assets are vested in a person so appointed.

(2) An appointment under this section must be in or evidenced in writing.

(3) This section does not apply to any trust having a custodian trustee or in relation to any assets vested in the official custodian for charities.

17 Power to appoint custodians. E+W

(1) Subject to the provisions of this Part, the trustees of a trust may appoint a person to act as a custodian in relation to such of the assets of the trust as they may determine.

(2) For the purposes of this Act a person is a custodian in relation to assets if he undertakes the safe custody of the assets or of any documents or records concerning the assets.

(3) An appointment under this section must be in or evidenced in writing.

(4) This section does not apply to any trust having a custodian trustee or in relation to any assets vested in the official custodian for charities.

18 Investment in bearer securities. E+W

(1) If trustees retain or invest in securities payable to bearer, they must appoint a person to act as a custodian of the securities.

(2) Subsection (1) does not apply if the trust instrument or any enactment or provision of subordinate legislation contains provision which (however expressed) permits the trustees to retain or invest in securities payable to bearer without appointing a person to act as a custodian.

(3) An appointment under this section must be in or evidenced in writing.

(4) This section does not apply to any trust having a custodian trustee or in relation to any securities vested in the official custodian for charities.

19 Persons who may be appointed as nominees or custodians. E+W

(1) A person may not be appointed under section 16, 17 or 18 as a nominee or custodian unless one of the relevant conditions is satisfied.

(2) The relevant conditions are that—

(a) the person carries on a business which consists of or includes acting as a nominee or custodian;

(b) the person is a body corporate which is controlled by the trustees;

(c) the person is a body corporate recognised under section 9 of the M6 Administration of Justice Act 1985.

(3) The question whether a body corporate is controlled by trustees is to be determined in accordance with [F3 section 1124 of the Corporation Tax Act 2010].

(4) The trustees of a charitable trust which is not an exempt charity must act in accordance with any guidance given by the [F4 Charity Commission] concerning the selection of a person for appointment as a nominee or custodian under section 16, 17 or 18.

(5) Subject to subsections (1) and (4), the persons whom the trustees may under section 16, 17 or 18 appoint as a nominee or custodian include—

(a) one of their number, if that one is a trust corporation, or

(b) two (or more) of their number, if they are to act as joint nominees or joint custodians.

(6) The trustees may under section 16 appoint a person to act as their nominee even though he is also—

(a) appointed to act as their custodian (whether under section 17 or 18 or any other power), or

(b) authorised to exercise functions as their agent (whether under section 11 or any other power).

(7) Likewise, the trustees may under section 17 or 18 appoint a person to act as their custodian even though he is also—

(a) appointed to act as their nominee (whether under section 16 or any other power), or

(b) authorised to exercise functions as their agent (whether under section 11 or any other power).

Textual Amendments

F3 Words in s. 19(3) substituted (1.4.2010 with effect in accordance with s. 1184(1)) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 319 (with Sch. 2)

F4 Words in s. 19(4) substituted (27.2.2007) by Charities Act 2006 (c. 50), s. 79(2), Sch. 8 para. 197; S.I. 2007/309, art. 2, Sch.

Marginal Citations

M6 1985 c. 61.

20 Terms of appointment of nominees and custodians. E+W

(1) Subject to subsection (2) and sections 29 to 32, the trustees may under section 16, 17 or 18 appoint a person to act as a nominee or custodian on such terms as to remuneration and other matters as they may determine.

(2) The trustees may not under section 16, 17 or 18 appoint a person to act as a nominee or custodian on any of the terms mentioned in subsection (3) unless it is reasonably necessary for them to do so.

(3) The terms are—

(a) a term permitting the nominee or custodian to appoint a substitute;

(b) a term restricting the liability of the nominee or custodian or his substitute to the trustees or to any beneficiary;

(c) a term permitting the nominee or custodian to act in circumstances capable of giving rise to a conflict of interest.

Review of and liability for agents, nominees and custodians etc. E+W

21 Application of sections 22 and 23. E+W

(1) Sections 22 and 23 apply in a case where trustees have, under section 11, 16, 17 or 18—

(a) authorised a person to exercise functions as their agent, or

(b) appointed a person to act as a nominee or custodian.

(2) Subject to subsection (3), sections 22 and 23 also apply in a case where trustees have, under any power conferred on them by the trust instrument or by any enactment or any provision of subordinate legislation—

(a) authorised a person to exercise functions as their agent, or

(b) appointed a person to act as a nominee or custodian.

(3) If the application of section 22 or 23 is inconsistent with the terms of the trust instrument or the enactment or provision of subordinate legislation, the section in question does not apply.

22 Review of agents, nominees and custodians etc. E+W

(1) While the agent, nominee or custodian continues to act for the trust, the trustees—

(a) must keep under review the arrangements under which the agent, nominee or custodian acts and how those arrangements are being put into effect,

(b) if circumstances make it appropriate to do so, must consider whether there is a need to exercise any power of intervention that they have, and

(c) if they consider that there is a need to exercise such a power, must do so.

(2) If the agent has been authorised to exercise asset management functions, the duty under subsection (1) includes, in particular—

(a) a duty to consider whether there is any need to revise or replace the policy statement made for the purposes of section 15,

(b) if they consider that there is a need to revise or replace the policy statement, a duty to do so, and

(c) a duty to assess whether the policy statement (as it has effect for the time being) is being complied with.

(3) Subsections (3) and (4) of section 15 apply to the revision or replacement of a policy statement under this section as they apply to the making of a policy statement under that section.

(4) “Power of intervention” includes—

(a) a power to give directions to the agent, nominee or custodian;

(b) a power to revoke the authorisation or appointment.

23 Liability for agents, nominees and custodians etc. E+W

(1) A trustee is not liable for any act or default of the agent, nominee or custodian unless he has failed to comply with the duty of care applicable to him, under paragraph 3 of Schedule 1—

(a) when entering into the arrangements under which the person acts as agent, nominee or custodian, or

(b) when carrying out his duties under section 22.

(2) If a trustee has agreed a term under which the agent, nominee or custodian is permitted to appoint a substitute, the trustee is not liable for any act or default of the substitute unless he has failed to comply with the duty of care applicable to him, under paragraph 3 of Schedule 1—

(a) when agreeing that term, or

(b) when carrying out his duties under section 22 in so far as they relate to the use of the substitute.

Supplementary E+W

24 Effect of trustees exceeding their powers. E+W

A failure by the trustees to act within the limits of the powers conferred by this Part—

(a) in authorising a person to exercise a function of theirs as an agent, or

(b) in appointing a person to act as a nominee or custodian,

does not invalidate the authorisation or appointment.

25 Sole trustees. E+W

(1) Subject to subsection (2), this Part applies in relation to a trust having a sole trustee as it applies in relation to other trusts (and references in this Part to trustees—except in sections 12(1) and (3) and 19(5)—are to be read accordingly).

(2) Section 18 does not impose a duty on a sole trustee if that trustee is a trust corporation.

26 Restriction or exclusion of this Part etc. E+W

The powers conferred by this Part are—

(a) in addition to powers conferred on trustees otherwise than by this Act, but

(b) subject to any restriction or exclusion imposed by the trust instrument or by any enactment or any provision of subordinate legislation.

27 Existing trusts. E+W

This Part applies in relation to trusts whether created before or after its commencement.

Part V E+W Remuneration

28 Trustee’s entitlement to payment under trust instrument. E+W

(1) Except to the extent (if any) to which the trust instrument makes inconsistent provision, subsections (2) to (4) apply to a trustee if—

(a) there is a provision in the trust instrument entitling him to receive payment out of trust funds in respect of services provided by him to or on behalf of the trust, and

(b) the trustee is a trust corporation or is acting in a professional capacity.

(2) The trustee is to be treated as entitled under the trust instrument to receive payment in respect of services even if they are services which are capable of being provided by a lay trustee.

(3) Subsection (2) applies to a trustee of a charitable trust who is not a trust corporation only—

(a) if he is not a sole trustee, and

(b) to the extent that a majority of the other trustees have agreed that it should apply to him.

(4) Any payments to which the trustee is entitled in respect of services are to be treated as remuneration for services (and not as a gift) for the purposes of—

(a) section 15 of the M7 Wills Act 1837 (gifts to an attesting witness to be void), and

(b) section 34(3) of the M8 Administration of Estates Act 1925 (order in which estate to be paid out).

(5) For the purposes of this Part, a trustee acts in a professional capacity if he acts in the course of a profession or business which consists of or includes the provision of services in connection with—

(a) the management or administration of trusts generally or a particular kind of trust, or

(b) any particular aspect of the management or administration of trusts generally or a particular kind of trust,

and the services he provides to or on behalf of the trust fall within that description.

(6) For the purposes of this Part, a person acts as a lay trustee if he—

(a) is not a trust corporation, and

(b) does not act in a professional capacity.

Marginal Citations

M7 1837 c. 26.

M8 1925 c. 23.

29 Remuneration of certain trustees. E+W

(1) Subject to subsection (5), a trustee who—

(a) is a trust corporation, but

(b) is not a trustee of a charitable trust,

is entitled to receive reasonable remuneration out of the trust funds for any services that the trust corporation provides to or on behalf of the trust.

(2) Subject to subsection (5), a trustee who—

(a) acts in a professional capacity, but

(b) is not a trust corporation, a trustee of a charitable trust or a sole trustee,

is entitled to receive reasonable remuneration out of the trust funds for any services that he provides to or on behalf of the trust if each other trustee has agreed in writing that he may be remunerated for the services.

(3) “Reasonable remuneration” means, in relation to the provision of services by a trustee, such remuneration as is reasonable in the circumstances for the provision of those services to or on behalf of that trust by that trustee and for the purposes of subsection (1) includes, in relation to the provision of services by a trustee who is [F5 a deposit taker] and provides the services in that capacity, the [F6 deposit taker's] reasonable charges for the provision of such services.

[F7 (3A) In subsection (3), “ deposit taker ” means—

(a) a person who has permission under Part 4A of the Financial Services and Markets Act 2000 to accept deposits, F8 ...

F8 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3B) A reference in subsection (3A) to a person or firm with permission to accept deposits does not include a person or firm with permission to do so only for the purposes of, or in the course of, carrying on another regulated activity in accordance with that permission.

(3C) Subsections (3A) and (3B) must be read with—

(a) section 22 of the Financial Services and Markets Act 2000,

(b) any relevant order under that section, and

(c) Schedule 2 to that Act.]

(4) A trustee is entitled to remuneration under this section even if the services in question are capable of being provided by a lay trustee.

(5) A trustee is not entitled to remuneration under this section if any provision about his entitlement to remuneration has been made—

(a) by the trust instrument, or

(b) by any enactment or any provision of subordinate legislation.

(6) This section applies to a trustee who has been authorised under a power conferred by Part IV or the trust instrument—

(a) to exercise functions as an agent of the trustees, or

(b) to act as a nominee or custodian,

as it applies to any other trustee.

Textual Amendments

F5 Words in s. 29(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 90(2)(a) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F6 Words in s. 29(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 90(2)(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F7 S. 29(3A)-(3C) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 90(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F8 S. 29(3A)(b) and word omitted (31.12.2020) by virtue of The EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 (S.I. 2018/1149), reg. 1(3), Sch. para. 36 (with reg. 4); 2020 c. 1, Sch. 5 para. 1(1)

30 Remuneration of trustees of charitable trusts. E+W

(1) The Secretary of State may by regulations make provision for the remuneration of trustees of charitable trusts who are trust corporations or act in a professional capacity.

(2) The power under subsection (1) includes power to make provision for the remuneration of a trustee who has been authorised under a power conferred by Part IV or any other enactment or any provision of subordinate legislation, or by the trust instrument—

(a) to exercise functions as an agent of the trustees, or

(b) to act as a nominee or custodian.

(3) Regulations under this section may—

(a) make different provision for different cases;

(b) contain such supplemental, incidental, consequential and transitional provision as the Secretary of State considers appropriate.

(4) The power to make regulations under this section is exercisable by statutory instrument, but no such instrument shall be made unless a draft of it has been laid before Parliament and approved by a resolution of each House of Parliament.

31 Trustees’ expenses. E+W

(1) A trustee—

(a) is entitled to be reimbursed from the trust funds, or

(b) may pay out of the trust funds,

expenses properly incurred by him when acting on behalf of the trust.

(2) This section applies to a trustee who has been authorised under a power conferred by Part IV or any other enactment or any provision of subordinate legislation, or by the trust instrument—

(a) to exercise functions as an agent of the trustees, or

(b) to act as a nominee or custodian,

as it applies to any other trustee.

32 Remuneration and expenses of agents, nominees and custodians. E+W

(1) This section applies if, under a power conferred by Part IV or any other enactment or any provision of subordinate legislation, or by the trust instrument, a person other than a trustee has been—

(a) authorised to exercise functions as an agent of the trustees, or

(b) appointed to act as a nominee or custodian.

(2) The trustees may remunerate the agent, nominee or custodian out of the trust funds for services if—

(a) he is engaged on terms entitling him to be remunerated for those services, and

(b) the amount does not exceed such remuneration as is reasonable in the circumstances for the provision of those services by him to or on behalf of that trust.

(3) The trustees may reimburse the agent, nominee or custodian out of the trust funds for any expenses properly incurred by him in exercising functions as an agent, nominee or custodian.

Modifications etc. (not altering text)

C13 S. 32 applied (with modifications) (2.1.2013) by The Charitable Incorporated Organisations (General) Regulations 2012 (S.I. 2012/3012), regs. 1, 33

C14 S. 32 applied (with modifications) by 1956 c. lxvii s. 5(1B)-(1D) (as substituted (10.3.2015) by The Charities (People's Dispensary for Sick Animals) Order 2015 (S.I. 2015/198), art. 1, Sch. Scheme para. 4)

C15 S. 32 applied (with modifications) by 1961 c. xxxviii, s. 9(2)(3)(b)(4) (as substituted (1.9.2017) by The Charities (Shakespeare Birthplace Trust) Order 2017 (S.I. 2017/783), art. 1, Sch. Scheme para. 5)

33 Application. E+W

(1) Subject to subsection (2), sections 28, 29, 31 and 32 apply in relation to services provided to or on behalf of, or (as the case may be) expenses incurred on or after their commencement on behalf of, trusts whenever created.

(2) Nothing in section 28 or 29 is to be treated as affecting the operation of—

(a) section 15 of the M9 Wills Act 1837, or

(b) section 34(3) of the M10 Administration of Estates Act 1925,

in relation to any death occurring before the commencement of section 28 or (as the case may be) section 29.

Marginal Citations

M9 1837 c. 26.

M10 1925 c. 23.

Part VI E+W Miscellaneous and Supplementary

34 Power to insure. E+W

(1) For section 19 of the M11 Trustee Act 1925 (power to insure) substitute—

“19 Power to insure.

(1) A trustee may—

(a) insure any property which is subject to the trust against risks of loss or damage due to any event, and

(b) pay the premiums out of the trust funds.

(2) In the case of property held on a bare trust, the power to insure is subject to any direction given by the beneficiary or each of the beneficiaries—

(a) that any property specified in the direction is not to be insured;

(b) that any property specified in the direction is not to be insured except on such conditions as may be so specified.

(3) Property is held on a bare trust if it is held on trust for—

(a) a beneficiary who is of full age and capacity and absolutely entitled to the property subject to the trust, or

(b) beneficiaries each of whom is of full age and capacity and who (taken together) are absolutely entitled to the property subject to the trust.

(4) If a direction under subsection (2) of this section is given, the power to insure, so far as it is subject to the direction, ceases to be a delegable function for the purposes of section 11 of the Trustee Act 2000 (power to employ agents).

(5) In this section “trust funds” means any income or capital funds of the trust.”

(2) In section 20(1) of the M12 Trustee Act 1925 (application of insurance money) omit “whether by fire or otherwise”.

(3) The amendments made by this section apply in relation to trusts whether created before or after its commencement.

Marginal Citations

M11 1925 c. 19.

M12 1925 c. 19.

35 Personal representatives. E+W

(1) Subject to the following provisions of this section, this Act applies in relation to a personal representative administering an estate according to the law as it applies to a trustee carrying out a trust for beneficiaries.

(2) For this purpose this Act is to be read with the appropriate modifications and in particular—

(a) references to the trust instrument are to be read as references to the will,

(b) references to a beneficiary or to beneficiaries, apart from the reference to a beneficiary in section 8(1)(b), are to be read as references to a person or the persons interested in the due administration of the estate, and

(c) the reference to a beneficiary in section 8(1)(b) is to be read as a reference to a person who under the will of the deceased or under the law relating to intestacy is beneficially interested in the estate.

(3) Remuneration to which a personal representative is entitled under section 28 or 29 is to be treated as an administration expense for the purposes of—

(a) section 34(3) of the M13 Administration of Estates Act 1925 (order in which estate to be paid out), and

(b) any provision giving reasonable administration expenses priority over the preferential debts listed in Schedule 6 to the M14 Insolvency Act 1986.

(4) Nothing in subsection (3) is to be treated as affecting the operation of the provisions mentioned in paragraphs (a) and (b) of that subsection in relation to any death occurring before the commencement of this section.

Marginal Citations

M13 1925 c. 23.

M14 19876 c. 45.

36 Pension schemes. E+W

(1) In this section “pension scheme” means an occupational pension scheme (within the meaning of the M15 Pension Schemes Act 1993) established under a trust and subject to the law of England and Wales.

(2) Part I does not apply in so far as it imposes a duty of care in relation to—

(a) the functions described in paragraphs 1 and 2 of Schedule 1, or

(b) the functions described in paragraph 3 of that Schedule to the extent that they relate to trustees—

(i) authorising a person to exercise their functions with respect to investment, or

(ii) appointing a person to act as their nominee or custodian.

(3) Nothing in Part II or III applies to the trustees of any pension scheme.

(4) Part IV applies to the trustees of a pension scheme subject to the restrictions in subsections (5) to (8).

(5) The trustees of a pension scheme may not under Part IV authorise any person to exercise any functions relating to investment as their agent.

(6) The trustees of a pension scheme may not under Part IV authorise a person who is—

(a) an employer in relation to the scheme, or

(b) connected with or an associate of such an employer,

to exercise any of their functions as their agent.

(7) For the purposes of subsection (6)—

(a) “employer”, in relation to a scheme, has the same meaning as in the M16 Pensions Act 1995;

(b) sections 249 and 435 of the M17 Insolvency Act 1986 apply for the purpose of determining whether a person is connected with or an associate of an employer.

(8) Sections 16 to 20 (powers to appoint nominees and custodians) do not apply to the trustees of a pension scheme.

Marginal Citations

M15 1993 c. 48.

M16 1995 c. 26.

M17 1986 c. 45.

37 Authorised unit trusts. E+W

(1) Parts II to IV do not apply to trustees of authorised unit trusts.

(2) “Authorised unit trust” means a unit trust scheme in the case of which an order under section 78 of the M18 Financial Services Act 1986 is in force.

Marginal Citations

M18 1986 c. 60.

38 Common investment schemes for charities etc. E+W

Parts II to IV do not apply to—

(a) trustees managing a fund under a common investment scheme made, or having effect as if made, under [F9 section 96 of the Charities Act 2011], other than such a fund the trusts of which provide that property is not to be transferred to the fund except by or on behalf of a charity the trustees of which are the trustees appointed to manage the fund, or

(b) trustees managing a fund under a common deposit scheme made, or having effect as if made, under [F10 section 100] of that Act.

Textual Amendments

F9 Words in s. 38(a) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 89(a) (with s. 20(2), Sch. 8)

F10 Words in s. 38(b) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 89(b) (with s. 20(2), Sch. 8)

39 Interpretation. E+W

(1) In this Act—

• “asset” includes any right or interest;

• “charitable trust” means a trust under which property is held for charitable purposes and “charitable purposes” [F11 has the meaning given by section 11 of the Charities Act 2011];

• “custodian trustee” has the same meaning as in the M19 Public Trustee Act 1906;

• “enactment” includes any provision of a Measure of the Church Assembly or of the General Synod of the Church of England;

• “exempt charity” has the same meaning as in [F12 the Charities Act 2011 ];

• “functions” includes powers and duties;

• “legal mortgage” has the same meaning as in the M20 Law of Property Act 1925;

• “personal representative” has the same meaning as in the M21 Trustee Act 1925;

• “settled land” has the same meaning as in the M22 Settled Land Act 1925;

• “trust corporation” has the same meaning as in the M23 Trustee Act 1925;

• “trust funds” means income or capital funds of the trust.

(2) In this Act the expressions listed below are defined or otherwise explained by the provisions indicated—

asset management functions	section 15(5)
custodian	section 17(2)
the duty of care	section 1(2)
the general power of investment	section 3(2)
lay trustee	section 28(6)
power of intervention	section 22(4)
the standard investment criteria	section 4(3)
subordinate legislation	section 6(3)
trustee acting in a professional capacity	section 28(5)
trust instrument	sections 6(2) and 35(2)(a)

Textual Amendments

F11 Words in s. 39(1) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 90(a) (with s. 20(2), Sch. 8)

F12 Words in s. 39(1) substituted (14.3.2012) by Charities Act 2011 (c. 25), s. 355, Sch. 7 para. 90(b) (with s. 20(2), Sch. 8)

Marginal Citations

M19 1906 c. 55.

M20 1925 c. 20.

M21 1925 c. 19.

M22 1925 c. 18.

M23 1925 c. 19.

40 Minor and consequential amendments etc. E+W

(1) Schedule 2 (minor and consequential amendments) shall have effect.

(2) Schedule 3 (transitional provisions and savings) shall have effect.

(3) Schedule 4 (repeals) shall have effect.

41 Power to amend other Acts. E+W

(1) A Minister of the Crown may by order make such amendments of any Act, including an Act extending to places outside England and Wales, as appear to him appropriate in consequence of or in connection with Part II or III.

(2) Before exercising the power under subsection (1) in relation to a local, personal or private Act, the Minister must consult any person who appears to him to be affected by any proposed amendment.

(3) An order under this section may—

(a) contain such transitional provisions and savings as the Minister thinks fit;

(b) make different provision for different purposes.

(4) The power to make an order under this section is exercisable by statutory instrument which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(5) “Minister of the Crown” has the same meaning as in the Ministers of the M24 Crown Act 1975.

Marginal Citations

M24 1975 c. 26.

42 Commencement and extent. E+W

(1) Section 41, this section and section 43 shall come into force on the day on which this Act is passed.

(2) The remaining provisions of this Act shall come into force on such day as the Lord Chancellor may appoint by order made by statutory instrument; and different days may be so appointed for different purposes.

(3) An order under subsection (2) may contain such transitional provisions and savings as the Lord Chancellor considers appropriate in connection with the order.

(4) Subject to section 41(1) and subsection (5), this Act extends to England and Wales only.

(5) An amendment or repeal in Part II or III of Schedule 2 or Part II of Schedule 4 has the same extent as the provision amended or repealed.

Subordinate Legislation Made

P1 S. 42(2) power fully exercised: 1.2.2001 appointed by S.I. 2001/49, art. 2

43 Short title. E+W

This Act may be cited as the Trustee Act 2000.

SCHEDULES

Section 2.

SCHEDULE 1 E+W Application of duty of care

Investment E+W

1 E+W The duty of care applies to a trustee—

(a) when exercising the general power of investment or any other power of investment, however conferred;

(b) when carrying out a duty to which he is subject under section 4 or 5 (duties relating to the exercise of a power of investment or to the review of investments).

Acquisition of land E+W

2 E+W The duty of care applies to a trustee—

(a) when exercising the power under section 8 to acquire land;

(b) when exercising any other power to acquire land, however conferred;

(c) when exercising any power in relation to land acquired under a power mentioned in sub-paragraph (a) or (b).

Agents, nominees and custodians E+W

3 (1) The duty of care applies to a trustee— E+W

(a) when entering into arrangements under which a person is authorised under section 11 to exercise functions as an agent;

(b) when entering into arrangements under which a person is appointed under section 16 to act as a nominee;

(c) when entering into arrangements under which a person is appointed under section 17 or 18 to act as a custodian;

(d) when entering into arrangements under which, under any other power, however conferred, a person is authorised to exercise functions as an agent or is appointed to act as a nominee or custodian;

(e) when carrying out his duties under section 22 (review of agent, nominee or custodian, etc.).

(2) For the purposes of sub-paragraph (1), entering into arrangements under which a person is authorised to exercise functions or is appointed to act as a nominee or custodian includes, in particular—

(a) selecting the person who is to act,

(b) determining any terms on which he is to act, and

(c) if the person is being authorised to exercise asset management functions, the preparation of a policy statement under section 15.

Compounding of liabilities E+W

4 E+W The duty of care applies to a trustee—

(a) when exercising the power under section 15 of the Trustee Act 1925 to do any of the things referred to in that section;

(b) when exercising any corresponding power, however conferred.

Insurance E+W

5 E+W The duty of care applies to a trustee—

(a) when exercising the power under section 19 of the Trustee Act 1925 to insure property;

(b) when exercising any corresponding power, however conferred.

Reversionary interests, valuations and audit E+W

6 E+W The duty of care applies to a trustee—

(a) when exercising the power under section 22(1) or (3) of the Trustee Act 1925 to do any of the things referred to there;

(b) when exercising any corresponding power, however conferred.

Exclusion of duty of care E+W

7 E+W The duty of care does not apply if or in so far as it appears from the trust instrument that the duty is not meant to apply.

Section 40.

SCHEDULE 2 U.K. Minor and consequential amendments

Part I E+W The Trustee Investments Act 1961 and the Charities Act 1993

The Trustee Investments Act 1961 (c.62) E+W

1 (1) Sections 1, 2, 5, 6, 12, 13 and 15 shall cease to have effect, except in so far as they are applied by or under any other enactment. E+W

(2) Section 3 and Schedules 2 and 3 shall cease to have effect, except in so far as they relate to a trustee having a power of investment conferred on him under an enactment—

(a) which was passed before the passing of the 1961 Act, and

(b) which is not amended by this Schedule.

(3) Omit—

(a) sections 8 and 9,

(b) paragraph 1(1) of Schedule 4, and

(c) section 16(1), in so far as it relates to paragraph 1(1) of Schedule 4.

The Charities Act 1993 (c.10) E+W

2 (1) Omit sections 70 and 71. E+W

(2) In section 86(2) in paragraph (a)—

(a) omit “70”, and

(b) at the end insert “ or ”.

(3) Omit section 86(2)(b).

Part II U.K. Other Public General Acts

The Places of Worship Sites Act 1873 (c.50) U.K.

3 U.K. In section 2 (payment of purchase money, etc.) for “shall be invested upon such securities or investments as would for the time being be authorised by statute or the Court of Chancery” substitute “ shall be invested under the general power of investment in section 3 of the Trustee Act 2000 ”.

The Technical and Industrial Institutions Act 1892 (c.29) U.K.

4 U.K. In section 9 (investment powers relating to proceeds of sale of land acquired under the Act) for subsection (5) substitute—

“(5) Money arising by sale may, until reinvested in the purchase of land, be invested—

(a) in the names of the governing body, in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act), or

(b) under the general power of investment in section 3 of that Act, by trustees for the governing body or by a person authorised by the trustees under that Act to invest as an agent of the trustees.

(6) Any profits from investments under subsection (5) shall be invested in the same way and added to capital until the capital is reinvested in the purchase of land.”

The Duchy of Cornwall Management Act 1893 (c.20) U.K.

5 U.K. The 1893 Act is hereby repealed.

The Duchy of Lancaster Act 1920 (c.51) U.K.

6 U.K. In section 1 (extension of powers of investment of funds of Duchy of Lancaster) for “in any of the investments specified in paragraph (a) of section one of the Trustees Act 1893 and any enactment amending or extending that paragraph” substitute “ under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act) ”.

The Settled Land Act 1925 (c.18) U.K.

7 U.K. In section 21 (absolute owners subject to certain interests to have the powers of tenant for life), in subsection (1)(d) for “income thereof” substitute “ resultant profits ”.

8 U.K. In section 39 (regulations respecting sales), in subsection (2), in the proviso, for the words from “accumulate” to the end of the subsection substitute “ accumulate the profits from the capital money by investing them and any resulting profits under the general power of investment in section 3 of the Trustee Act 2000 and shall add the accumulations to capital. ”

9 U.K. In section 73 (modes of investment or application), in subsection (1) for paragraph (i) substitute—

“(i) In investment in securities either under the general power of investment in section 3 of the Trustee Act 2000 or under a power to invest conferred on the trustees of the settlement by the settlement;”.

10 (1) In section 75 (regulations respecting investment, devolution, and income of securities etc.), for subsection (2) substitute— U.K.

“(2) Subject to Part IV of the Trustee Act 2000, to section 75A of this Act and to the following provisions of this section—

(a) the investment or other application by the trustees shall be made according to the discretion of the trustees, but subject to any consent required or direction given by the settlement with respect to the investment or other application by the trustees of trust money of the settlement, and

(b) any investment shall be in the names or under the control of the trustees.”

(2) For subsection (4) of that section substitute—

“(4) The trustees, in exercising their power to invest or apply capital money, shall—

(a) so far as practicable, consult the tenant for life; and

(b) so far as consistent with the general interest of the settlement, give effect to his wishes.

(4A) Any investment or other application of capital money under the direction of the court shall not during the subsistence of the beneficial interest of the tenant for life be altered without his consent.

(4B) The trustees may not under section 11 of the Trustee Act 2000 authorise a person to exercise their functions with respect to the investment or application of capital money on terms that prevent them from complying with subsection (4) of this section.

(4C) A person who is authorised under section 11 of the Trustee Act 2000 to exercise any of their functions with respect to the investment or application of capital money is not subject to subsection (4) of this section.”

(3) Nothing in this paragraph affects the operation of section 75 in relation to directions of the tenant for life given, but not acted upon by the trustees, before the commencement of this paragraph.

11 U.K. After section 75 insert—

“75A Power to accept charge as security for part payment for land sold.

(1) Where—

(a) land subject to the settlement is sold by the tenant for life or statutory owner, for an estate in fee simple or a term having at least five hundred years to run, and

(b) the proceeds of sale are liable to be invested,

the tenant for life or statutory owner may, with the consent of the trustees of the settlement, contract that the payment of any part, not exceeding two-thirds, of the purchase money shall be secured by a charge by way of legal mortgage of the land sold, with or without the security of any other property.

(2) If any buildings are comprised in the property secured by the charge, the charge must contain a covenant by the mortgagor to keep them insured for their full value against loss or damage due to any event.

(3) A person exercising the power under subsection (1) of this section, or giving consent for the purposes of that subsection—

(a) is not required to comply with section 5 of the Trustee Act 2000 before giving his consent, and

(b) is not liable for any loss incurred merely because the security is insufficient at the date of the charge.

(4) The power under subsection (1) of this section is exercisable subject to the consent of any person whose consent to a change of investment is required by the instrument, if any, creating the trust.

(5) Where the sale referred to in subsection (1) of this section is made under the order of the court, the power under that subsection applies only if and as far as the court may by order direct.”

12 U.K. Omit section 96 (protection of each trustee individually).

13 U.K. In section 98 (protection of trustees in particular cases), omit subsections (1) and (2).

14 U.K. Omit section 100 (trustees’ reimbursements).

15 U.K. In section 102 (management of land during minority or pending contingency), in subsection (2) for paragraph (e) substitute—

“(e) to insure against risks of loss or damage due to any event under section 19 of the Trustee Act 1925;”.

16 (1) In section 104 (powers of tenant for life not assignable etc.)— U.K.

(a) in subsection (3)(b) omit “authorised by statute for the investment of trust money”, and

(b) in subsection (4)(b) for the words from “no investment” to “trust money;” substitute “ the consent of the assignee shall be required to an investment of capital money for the time being affected by the assignment in investments other than securities, and to any application of such capital money; ”.

(2) Sub-paragraph (1) applies to the determination on or after the commencement of that sub-paragraph of whether an assignee’s consent is required to the investment or application of capital money.

17 U.K. In section 107 (tenant for life deemed to be in the position and to have the duties and liabilities of a trustee, etc.) after subsection (1) insert—

“(1A) The following provisions apply to the tenant for life as they apply to the trustees of the settlement—

(a) sections 11, 13 to 15 and 21 to 23 of the Trustee Act 2000 (power to employ agents subject to certain restrictions),

(b) section 32 of that Act (remuneration and expenses of agents etc.),

(c) section 19 of the Trustee Act 1925 (power to insure), and

(d) in so far as they relate to the provisions mentioned in paragraphs (a) and (c), Part I of, and Schedule 1 to, the Trustee Act 2000 (the duty of care).”

The Trustee Act 1925 (c.19) U.K.

18 U.K. Omit Part I (investments).

19 U.K. In section 14 (power of trustees to give receipts) in subsection (1) after “securities,” insert “ investments ”.

20 U.K. In section 15 (power to compound liabilities), for “in good faith” substitute “ if he has or they have discharged the duty of care set out in section 1(1) of the Trustee Act 2000 ”.

21 U.K. Omit section 21 (deposit of documents for safe custody).

22 U.K. In section 22 (reversionary interests, valuations, and audit)—

(a) in subsection (1), for “in good faith” substitute “ if they have discharged the duty of care set out in section 1(1) of the Trustee Act 2000 ”, and

(b) in subsection (3), omit “in good faith” and at the end insert “ if the trustees have discharged the duty of care set out in section 1(1) of the Trustee Act 2000 ”.

23 U.K. Omit section 23 (power to employ agents).

24 U.K. Omit section 30 (implied indemnity of trustees).

25 U.K. In section 31(2) (power to invest income during minority) for “in the way of compound interest by investing the same and the resulting income thereof” substitute “ by investing it, and any profits from so investing it ”.

The Land Registration Act 1925 (c.21) U.K.

F13 26 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 Sch. 2 para. 26 repealed (13.10.2003) by Land Registration Act 2002 (c. 9), s. 136(2), Sch. 13 (with s. 129, Sch. 12 para. 1); S.I. 2003/1725, art. 2(1)

The Administration of Estates Act 1925 (c.23) U.K.

27 U.K. In section 33, in subsection (3) (investment during minority of beneficiary or the subsistence of a life interest) for the words from “in any investments for the time being authorised by statute” to the end of the subsection substitute “ under the Trustee Act 2000. ”

28 U.K. In section 39 (powers of management) after subsection (1) insert—

“(1A) Subsection (1) of this section is without prejudice to the powers conferred on personal representatives by the Trustee Act 2000.”

The Universities and College Estates Act 1925 (c.24) U.K.

29 U.K. In section 26 (modes of application of capital money) in subsection (1) for paragraph (i) substitute—

“(i) In investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act);”.

The Regimental Charitable Funds Act 1935 (c.11) U.K.

30 U.K. In section 2(1) (application of funds held on account of regimental charitable funds)—

(a) in paragraph (a) for “in some manner” to “trusts” substitute “ under the general power of investment in section 3 of the Trustee Act 2000 ”;

(b) in paragraph (b) after “the income” insert “ or the other profits ”.

The Agricultural Marketing Act 1958 (c.47) U.K.

31 (1) In section 16 (investment of surplus funds of boards) for paragraph (a) substitute— U.K.

“(a) the moneys of the board not for the time being required by them for the purposes of their functions are not, except with the approval of the Minister, invested otherwise than in investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act); and”.

(2) Any scheme made under the 1958 Act and in effect before the day on which sub-paragraph (1) comes into force shall be treated, in relation to the making of investments on and after that day, as including provision permitting investment by the board in accordance with section 16(a) of the 1958 Act as amended by sub-paragraph (1).

The Horticulture Act 1960 (c.22) U.K.

32 U.K. In section 13 (miscellaneous financial powers of organisations promoting home-grown produce) for subsection (3) substitute—

“(3) A relevant organisation may invest any of its surplus money which is not for the time being required for any other purpose in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act)”.

The House of Commons Members’ Fund Act 1962 (c.53) U.K.

33 (1) In section 1 (powers of investment of trustees of House of Commons Members’ Fund)— U.K.

(a) in subsection (2) omit “Subject to the following provisions of this section”;

(b) omit subsections (3) to (5).

(2) In section 2 (interpretation etc.) omit subsection (1).

The Betting, Gaming and Lotteries Act 1963 (c.2) U.K.

34 U.K. In section 25(1) (general powers and duties of the Horserace Betting Levy Board) for paragraph (e) substitute—

“(e) to make such other investments as—

(i) they judge desirable for the proper conduct of their affairs, and

(ii) a trustee would be able to make under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act);”.

The Cereals Marketing Act 1965 (c.14) U.K.

F14 35 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F14 Sch. 2 para. 35 repealed (1.4.2008) by The Agriculture and Horticulture Development Board Order 2008 (S.I. 2008/576), art. 1(3), Sch. 5 para. 7 (with Sch. 4 para. 10)

The Agriculture Act 1967 (c.22) U.K.

F15 36 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F15 Sch. 2 para. 36 repealed (1.4.2008) by The Agriculture and Horticulture Development Board Order 2008 (S.I. 2008/576), art. 1(3), Sch. 5 para. 7 (with Sch. 4 para. 10)

The Solicitors Act 1974 (c.47) U.K.

F16 37 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16 Sch. 2 para. 37 repealed (1.1.2010) by Legal Services Act 2007 (c. 29), s. 211(2), Sch. 23 (with ss. 29, 192, 193); S.I. 2009/3250, art. 2(i)(xii)

The Policyholders Protection Act 1975 (c.75) U.K.

38 U.K. In Schedule 1, in paragraph 7, for sub-paragraph (1) (power of Policyholders Protection Board to invest) substitute—

“(1) The Board may invest any funds held by them which appear to them to be surplus to their requirements for the time being—

(a) in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act); or

(b) in any investment approved for the purpose by the Treasury.”

The National Heritage Act 1980 (c.17) U.K.

39 U.K. In section 6 for subsection (3) (powers of investment of Trustees of National Heritage Memorial Fund) substitute—

“(3) The Trustees may invest any sums to which subsection (2) does not apply in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).”

The Licensing (Alcohol Education and Research) Act 1981 (c.28) U.K.

F17 40 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F17 Sch. 2 para. 40 omitted (1.7.2012) by virtue of Health and Social Care Act 2012 (c. 7), s. 306(4), Sch. 20 para. 3(a) (with Sch. 20 para. 4); S.I. 2012/1319, art. 2(3)

The Fisheries Act 1981 (c.29) U.K.

41 U.K. For section 10 (powers of investment of Sea Fish Industry Authority) substitute—

“10 Investment of reserve funds.

Any money of the Authority which is not immediately required for any other purpose may be invested by the Authority in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act)”.

The Duchy of Cornwall Management Act 1982 (c.47) U.K.

42 U.K. For section 1 (powers of investment of Duchy property) substitute—

“1 Powers of investment of Duchy property.

The power of investment conferred by the Duchy of Cornwall Management Act 1863 includes power to invest in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).”

43 U.K. In—

(a) section 6(3) (Duchy of Cornwall Management Acts extended in relation to banking), and

(b) section 11(2) (collective citation of Duchy of Cornwall Management Acts),

for “Duchy of Cornwall Management Acts 1868 to 1893” substitute “ Duchy of Cornwall Management Acts 1863 to 1868 ”.

The Administration of Justice Act 1982 (c.53) U.K.

44 U.K. In section 42 (common investment schemes) in subsection (6) for paragraph (a) substitute—

“(a) he may invest trust money in shares in the fund without obtaining and considering advice on whether to make such an investment; and”.

The Trusts of Land and Appointment of Trustees Act 1996 (c.47) U.K.

45 (1) In section 6 (general powers of trustees), in subsection (3) for “purchase a legal estate in any land in England and Wales” substitute “ acquire land under the power conferred by section 8 of the Trustee Act 2000. ” U.K.

(2) Omit subsection (4) of that section.

(3) After subsection (8) of that section insert—

“(9) The duty of care under section 1 of the Trustee Act 2000 applies to trustees of land when exercising the powers conferred by this section.”

46 U.K. In section 9 (delegation by trustees) omit subsection (8).

47 U.K. After section 9 insert—

“9A Duties of trustees in connection with delegation etc.

(1) The duty of care under section 1 of the Trustee Act 2000 applies to trustees of land in deciding whether to delegate any of their functions under section 9.

(2) Subsection (3) applies if the trustees of land—

(a) delegate any of their functions under section 9, and

(b) the delegation is not irrevocable.

(3) While the delegation continues, the trustees—

(a) must keep the delegation under review,

(b) if circumstances make it appropriate to do so, must consider whether there is a need to exercise any power of intervention that they have, and

(c) if they consider that there is a need to exercise such a power, must do so.

(4) “Power of intervention” includes—

(a) a power to give directions to the beneficiary;

(b) a power to revoke the delegation.

(5) The duty of care under section 1 of the 2000 Act applies to trustees in carrying out any duty under subsection (3).

(6) A trustee of land is not liable for any act or default of the beneficiary, or beneficiaries, unless the trustee fails to comply with the duty of care in deciding to delegate any of the trustees’ functions under section 9 or in carrying out any duty under subsection (3).

(7) Neither this section nor the repeal of section 9(8) by the Trustee Act 2000 affects the operation after the commencement of this section of any delegation effected before that commencement.”

48 U.K. Omit section 17(1) (application of section 6(3) in relation to trustees of proceeds of sale of land).

49 U.K. In Schedule 3 (consequential amendments) omit paragraph 3(4) (amendment of section 19(1) and (2) of Trustee Act 1925).

Part III U.K. Measures

The Ecclesiastical Dilapidations Measure 1923 (No.3) U.K.

50 U.K. In section 52, in subsection (5) (investment of sums held in relation to repair of chancels)—

(a) for “in any investment permitted by law for the investment of trust funds, and the yearly income resulting therefrom shall be applied,” substitute “ in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000, and the annual profits from the investments shall be applied ”; and

(b) in paragraph (iii) for “any residue of the said income not applied as aforesaid in any year” substitute “ any residue of the profits from the investments not applied in any year. ”

The Diocesan Stipends Funds Measure 1953 (No.2) U.K.

51 U.K. In section 4 (application of moneys credited to capital accounts) in subsection (1) for paragraph (bc) substitute—

“(bc) investment in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act);”.

The Church Funds Investment Measure 1958 (No.1) U.K.

52 U.K. In the Schedule, in paragraph 21 (range of investments of deposit fund) for paragraphs (a) to (d) of sub-paragraph (1) substitute—

“(aa) In any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act);”.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F18 53 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F18 Sch. 2 para. 53 and cross-heading repealed (1.3.2019) by Church of England Pensions Measure 2018 (No. 9), s. 61(2), Sch. 5 (with Sch. 4); S.I. 2019/98, art. 2

The Repair of Benefice Buildings Measure 1972 (No.2) U.K.

54 U.K. In section 17, in subsection (2) (diocesan parsonages fund’s power of investment), for “who shall have the same powers of investment as trustees of trust funds:” substitute “ who shall have the same power as trustees to invest in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act). ”

The Pastoral Measure 1983 (No.1) U.K.

55 U.K. In section 44, for subsection (6) (Redundant Churches Fund’s power of investment) substitute—

“(6) The powers to invest any such sums are—

(a) power to invest in investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act); and

(b) power to invest in the investments referred to in paragraph 21(1)(e) and (f) of the Schedule to the Church Funds Investment Measure 1958.”

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

F19 56 U.K. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F19 Sch. 2 para. 56 and cross-heading repealed (1.3.2019) by Church of England Pensions Measure 2018 (No. 9), s. 61(2), Sch. 5 (with Sch. 4); S.I. 2019/98, art. 2

The Cathedrals Measure 1999 (No.1) U.K.

57 U.K. In section 16 (cathedral moneys: investment powers, etc.), in subsection (1)—

(a) for paragraph (c) substitute—

“(c) power to invest in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act),”,

and

(b) omit the words from “and the powers” to the end of the subsection.

Section 40.

SCHEDULE 3 E+W Transitional provisions and savings

The Trustee Act 1925 (c.19) E+W

1 (1) Sub-paragraph (2) applies if, immediately before the day on which Part IV of this Act comes into force, a banker or banking company holds any bearer securities deposited with him under section 7(1) of the 1925 Act (investment in bearer securities). E+W

(2) On and after the day on which Part IV comes into force, the banker or banking company shall be treated as if he had been appointed as custodian of the securities under section 18.

2 E+W The repeal of section 8 of the 1925 Act (loans and investments by trustees not chargeable as breaches of trust) does not affect the operation of that section in relation to loans or investments made before the coming into force of that repeal.

3 E+W The repeal of section 9 of the 1925 Act (liability for loss by reason of improper investment) does not affect the operation of that section in relation to any advance of trust money made before the coming into force of that repeal.

4 (1) Sub-paragraph (2) applies if, immediately before the day on which Part IV of this Act comes into force, a banker or banking company holds any documents deposited with him under section 21 of the 1925 Act (deposit of documents for safe custody). E+W

(2) On and after the day on which Part IV comes into force, the banker or banking company shall be treated as if he had been appointed as custodian of the documents under section 17.

5 (1) Sub-paragraph (2) applies if, immediately before the day on which Part IV of this Act comes into force, a person has been appointed to act as or be an agent or attorney under section 23(1) or (3) of the 1925 Act (general power to employ agents etc.). E+W

(2) On and after the day on which Part IV comes into force, the agent shall be treated as if he had been authorised to exercise functions as an agent under section 11 (and, if appropriate, as if he had also been appointed under that Part to act as a custodian or nominee).

6 E+W The repeal of section 23(2) of the 1925 Act (power to employ agents in respect of property outside the United Kingdom) does not affect the operation after the commencement of the repeal of an appointment made before that commencement.

The Trustee Investments Act 1961 (c.62) E+W

7 (1) A trustee shall not be liable for breach of trust merely because he continues to hold an investment acquired by virtue of paragraph 14 of Part II of Schedule 1 to the 1961 Act (perpetual rent-charges etc.). E+W

(2) A person who—

(a) is not a trustee,

(b) before the commencement of Part II of this Act had powers to invest in the investments described in paragraph 14 of Part II of Schedule 1 to the 1961 Act, and

(c) on that commencement acquired the general power of investment,

shall not be treated as exceeding his powers of investment merely because he continues to hold an investment acquired by virtue of that paragraph.

The Cathedrals Measure 1963 (No.2) E+W

8 E+W While section 21 of the Cathedrals Measure 1963 (investment powers, etc. of capitular bodies) continues to apply in relation to any cathedral, that section shall have effect as if—

(a) in subsection (1), for paragraph (c) and the words from “and the powers” to the end of the subsection there were substituted—

“(c) power to invest in any investments in which trustees may invest under the general power of investment in section 3 of the Trustee Act 2000 (as restricted by sections 4 and 5 of that Act).”,

and

(b) in subsection (5), for “subsections (2) and (3) of section six of the Trustee Investments Act 1961” there were substituted “ section 5 of the Trustee Act 2000 ”.

Section 40.

SCHEDULE 4 U.K. Repeals

Part I E+W The Trustee Investments Act 1961 and the Charities Act 1993

Chapter	Short title	Extent of repeal
1961 c. 62.	The Trustee Investments Act 1961.	Sections 1 to 3, 5, 6, 8, 9, 12, 13, 15 and 16(1). Schedules 2 and 3. In Schedule 4, paragraph 1(1).
1993 c. 10.	The Charities Act 1993.	Sections 70 and 71. In section 86(2) in paragraph (a), “70” and paragraph (b).

Note: the repeals in this Part of this Schedule have effect in accordance with Part I of Schedule 2.

Part II U.K. Other repeals

Chapter	Short title	Extent of repeal
1893 c. 20.	The Duchy of Cornwall Management Act 1893.	The whole Act.
1925 c. 18.	The Settled Land Act 1925.	Section 96. Section 98(1) and (2). Section 100. In section 104(3)(b) the words “authorised by statute for the investment of trust money”.
1925 c. 19.	The Trustee Act 1925.	Part I. In section 20(1) the words “whether by fire or otherwise”. Sections 21, 23 and 30.
1961 No. 3.	The Clergy Pensions Measure 1961.	Section 32(3).
1962 c. 53.	The House of Commons Members’ Fund Act 1962.	In section 1, in subsection (2) the words “Subject to the following provisions of this section” and subsections (3) to (5). Section 2(1).
1965 c. 14.	The Cereals Marketing Act 1965.	Section 18(3).
1967 c. 22.	The Agriculture Act 1967.	Section 18(3).
1988 No. 4.	The Church of England (Pensions) Measure 1988.	Section 14(b).
1996 c. 47.	The Trusts of Land and Appointment of Trustees Act 1996.	Section 6(4). Section 9(8). Section 17(1). In Schedule 3, paragraph 3(4).
1999 No. 1.	The Cathedrals Measure 1999.	In section 16(1), the words from “and the powers” to the end of the subsection.